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.
Bu hikaye The New Indian Express Coimbatore dergisinin December 06, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The New Indian Express Coimbatore dergisinin December 06, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
MAJOR SMARTPHONE LAUNCHES IN JANUARY 2025
OnePlus 13 series, Samsung Galaxy S25, and more
'AI is a tool that enhances productivity; it doesn't replace jobs'
Artificial Intelligence (AI) is a tool that enhances productivity rather than replacing jobs, said Shelton Rego, vice-president of sales, Freshworks India.
'Chip designing skills, ecosystem give India edge in semicon biz'
Director of IBM Research India and CTO of IBM India and South Asia, Dr Amith Singhee, in an interaction with Dipak Mondal, explains breakthroughs in quantum computing and Generative AI. Excerpts:
Dubai may host India matches in 2025 Champions Trophy
EXPECTEDLY, the International Cricket Council on Thursday announced that India will play their 2025 Champions Trophy matches at a neutral venue.
AFTER ASHWIN, WHO? THE LAST OF OGS IN FINAL STRETCH
Post offie's retirement, focus is on senior players like Rohit, Kohli and India's transition phase
Ashwin gets hero's welcome at home from family and friends
RAVICHANDRAN Ashwin, who took the cricketing world by surprise with his sudden retirement from international cricket, arrived in Chennai early morning on Thursday.
Liverpool & Arsenal reach semifinals
LIVERPOOL moved into the League Cup semifinals as the holders won 2-1 against managerless Southampton, while Gabriel Jesus ended his goal drought with a hat-trick in Arsenal's 3-2 victory over Crystal Palace on Wednesday.
Start-up funding up 6% YoY at $11.3 bn in 2024
IN 2024, the start-up ecosystem saw a marginal 6% increase in funding at $11.3 billion compared to $10.7 billion in 2023.
Day of records for Richa & India as hosts win series 2-1
RICHA Ghosh (54) equalled the world record for the fastest fifty in women's T20Is (18 balls) after Smriti Mandhana's (77) fireworks as India registered 217 for 4 in the series-deciding third and final match against the West Indies here on Thursday.
INR hits all-time low, breaches 85 mark against USD
Indian currency falls as US Federal Reserve scaled back rate cut projections for 2025