India’s GDP Growth Slows to 7-Quarter Low of 5.4% Amid Manufacturing and Mining Slump
New Delhi: India’s economic growth slowed to 5.4% in the July-September quarter of FY25, marking a seven-quarter low, as sluggish performance in the manufacturing and mining sectors weighed on the economy, according to data released by the Ministry of Statistics and Programme Implementation.
The latest figures represent a sharp decline from the 6.7% growth recorded in the April-June quarter and the 8.1% expansion seen during the same period last year. This deceleration has raised concerns about the health of India’s economic recovery post-pandemic.
Manufacturing, which accounts for a significant share of India’s GDP, contracted by 2.3% during the quarter, while mining output shrank by 1.7%. Experts attribute this to weak domestic demand, subdued export orders, and higher input costs affecting profitability in these sectors.
Other sectors, including agriculture and services, displayed resilience, but their growth was insufficient to offset the slowdown in industrial output.
The government remains optimistic, citing strong macroeconomic fundamentals and expectations of recovery in the coming quarters. “While the GDP figures indicate a temporary slowdown, we are confident that measures to boost investment, consumption, and infrastructure will accelerate growth in the upcoming quarters,” said a Finance Ministry official.
Economists, however, remain cautious. “Persistent high inflation, global economic uncertainties, and slowing private investment are challenges that India must address to sustain a growth trajectory,” noted an economist from the Reserve Bank of India.
The GDP growth figures come amid global concerns over slowing economic activity, and India’s policymakers may face pressure to announce further fiscal and monetary interventions to stimulate growth and maintain investor confidence.
As the festive season approaches, the government is hopeful that improved consumer spending and robust agricultural performance will provide a much-needed boost to the economy.