GDP shocker: growth rate dipped to 5.4%

• Manufacturing led to a 5.4% GDP growth in Q2 of FY25, compared to 6.7% in April-June and 8.1% in the previous quarter.
• Real Gross Value Added (GVA) grew by 5.6% in Q2 of FY25, compared to 7.7% in Q2 of FY24.
• Nominal GVA saw a exponential growth rate of around 8.1% in Q2 of FY25, compared to 9.3% in Q2 of FY24.
• Despite slow growth in manufacturing and mining & quarrying sectors, real GVA in H1 (April-September) recorded a growth rate of 6.2%.
• Agriculture and allied sector saw a 3.5% growth rate in Q2 of FY25.
• Construction sector saw 7.7% and 9.1% growth rates in Q2 and H1 of FY25.
• Tertiary sector saw a 7.1% growth rate in Q2 of FY25.
• Trade, hotels, transport, communication, and broadcasting services saw a 6% growth rate in Q2 of FY25.

India’s Economic Growth Data for Q2 2022-23

• GDP and GVA are the two main indicators of a country’s economic performance.
• GDP measures the monetary measure of all final goods and services produced in a country.
• Four key engines of GDP growth include private consumption, government consumption, investments, and net effect of exports and imports.
• GDP calculation: GDP = private consumption + gross investment + government investment + government spending + (exports-imports).
• GVA calculates the same national income from the supply side by adding up all value added across different sectors.
• GDP and GVA are related by the equation: GDP = (GVA) + (Taxes earned by the government) — (Subsidies provided by the government).