The year-on-year real GDP growth rate has declined significantly to 5.4 percent, down from 8.6 percent in Q3 2023-24, signaling a return to growth levels last seen two years ago. Besides the numbers, the quality of growth has raised concerns about the near-term economic trajectory, the implications for the coordination of monetary and fiscal policies, and adherence to fiscal discipline.
The deceleration is primarily driven by the weakening investment and exports. Gross fixed capital formation, a key measure of investment in fixed assets, has significantly declined from 11.6 percent in Q2 of 2023-24 to just 5.4 percent in Q2 of 2024-25, with half-yearly growth also slowing from 10.1 percent in the first half of 2023-24 to 6.4 percent in the corresponding period of 2024-25. This underscores the waning momentum in capital investments, which are critical for sustained economic expansion.
The stark reversal in import growth further highlights the weakening dynamics. What stood at 11.6 percent in Q2 of 2023-24, has plunged to -2.9 percent in Q2 of 2024-25. This contraction, often reflective of reduced domestic demand and economic activity, adds to the growing concerns about the economy's overall health and trajectory.
Growth in government spending has also lost steam, underscoring a decline in fiscal impetus. In Q2 2023-24, government spending grew 14 percent, but this has dropped sharply to just 4.4 percent in Q2 2024-25.
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Wake-up call
Actor Thambi Ramaiah on the importance of making films that promote moral values, working with his son Umapathi, his bond with Samuthirakani, and more
'I fled Iran because I have more stories to tell'
..saysS Mohammad Rasoulof, an Iranian filmmaker living in exile in Germany, whose latest work, The Seed of the Sacred Fig, represents his adopted country at the Oscars
Paul Mescal to play Paul McCartney?
In a conversation with Christopher Nolan at the Directors Guild of America in Los Angeles, Scott confirmed that he is working on a post-apocalyptic thriller titled The Dog Stars.
Meet the parents 4 in the works
Actors Robert De Niro, Ben Stiller, Teri Polo and Blythe Danner are in negotiations to reprise their roles in the fourth installment of the Meet The Parents franchise.
ASAP Rocky to play the lead in High and Low
In a major cast announcement in Spike Lee's High and Low, American rap artist ASAP Rocky has joined the film as the lead actor.
DHANUSH'S NEEK TO RELEASE IN FEBRUARY 2025
DHANUSH's upcoming directorial Nilavukku En Mel Ennadi Kobam (NEEK) has set a Valentine's week release in 2025.
Melding melody with magic
COME December, the Chennai sun softens its glare; the sultry air gives way to a refreshing coolness, and the breeze whispers through the streets.
ON A LEGEND'S FOOTSTEPS
Garnering praises Viswanathan had more than one reason to remember that character that fetched him the Kodai Nataka Vizha award. It was made more special when eminent theatre and cine actor VS Raghavan, who was also the chief guest, said, \"Ramesh lived with the character.\"
Publicity stunt or showcasing stupidity?
The columnist is a writer and illustrator
CHRISTIAN DIOR'S DESIGNER OF DREAMS EXHIBITION HEADS TO SAUDI ARABIA
FASHION tourism has emerged as a booming trend in recent years, as style-conscious travellers increasingly seek destinations that blend cultural exploration with sartorial experiences.
