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 Vijayawada 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 Vijayawada 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
DARK ENERGY DOESN'T EXIST?
New study shows the 'timescape' model of cosmic expansion, which doesn't have a need for dark energy because the differences in stretching light aren't the result of an accelerating universe, but instead a consequence of how we calibrate time and distance
Deol's ton helps India seal series
HARLEEN DEOL'S maiden hundred set the foundation and India sealed the ODI series with a 115-run win over the West Indies.
Cranbrook to MCG, the rise and rise of teenager Konstas
ON the eve of New South Wales' first Sheffield Shield match of the season - against South Australia at Cricket Central in Sydney - Sam Konstas was sitting with his batting coach Tahmid Islam for dinner.
Shooting mental sport, don't know when award snub will affect Manu: Jaspal
DOUBLE Olympic medallist Manu Bhaker finally broke her silence on her exclusion from Khel Ratna list.
Timely lift for Haryana shuttler
DEVIKA SIHAG is stoked at the moment. She had a valid reason to be.
India to play matches in Dubai, Pak tie on Feb 23
FINALLY, the International Cricket Council on Tuesday announced the much-awaited schedule of the 2025 Champions Trophy.
Excited with pack of pacers in SA20
WITH the third edition of the SA20 coming soon, the Ambassador of the franchise league and former South African fast bowler Allan Donald believes the new crop of pace bowlers coming from his home country are the ones to watch out for.
HFCL defence equipment mfg unit in Hosur
HFCL Limited, a leading telecom equipment maker, on Tuesday inaugurated a state-of-the-art defence equipment manufacturing facility in Hosur, Tamil Nadu.
PM Modi meets economists ahead of Budget
PRIME Minister Narendra Modi on Tuesday interacted with a group of economists and thought leaders in preparation for the Union Budget at NITI Aayog.
Recharge plans for voice calls, messages to benefit customer, not telcos
THE Telecom Regulatory Authority of India's (TRAI) recent directive to have recharge plans exclusively for voice calls and messages without any compulsion to buy internet data will benefit customers not much to telecom service providers, say industry experts.
