The Secondary Sector grew significantly by 8.4 percent in Q1 of FY2024-25 compared to 5.9 percent growth in Q1 of the previous financial year. The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), has released the Quarterly Estimates of Gross Domestic Product (GDP) for the April-June quarter (Q1) of FY2024-25, along with its expenditure components at both Constant (2011-12) and Current Prices.
In Q1 of FY2024-25, Real GDP is estimated to have grown by 6.7 percent, a decrease from the 8.2 percent growth recorded in Q1 of FY2023-24. Nominal GDP grew by 9.7 percent in Q1 of FY 2024-25, up from 8.5 percent in the same quarter of the previous year. Real Gross Value Added (GVA) increased by 6.8 percent in Q1 of FY2024-25, compared to an 8.3 percent rise in Q1 of the preceding financial year. The growth in GVA for Q1 of FY2024-25 was driven by substantial growth in the Secondary Sector, which includes Construction (10.5 percent), Electricity, Gas, Water Supply & Other Utility Services (10.4 percent), and Manufacturing (7.0 percent).
The Nominal GVA growth rate for Q1 of FY2024-25 is estimated at 9.8 percent, compared to 8.2 percent in Q1 of FY2023-24. Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF), at Constant Prices, saw growth rates of 7.4 percent and 7.5 percent, respectively, in Q1 of FY2024-25.
Net Taxes at Current Prices recorded an 8.0 percent growth rate in Q1 of FY2024-25, resulting in a 0.1 percentage point difference between the growth rates of GVA and GDP.
The Quarterly Estimates for Real GDP at Constant Prices in Q1 of FY2024-25 is Rs 43.64 lakh crore, up from Rs 40.91 lakh crore in Q1 of FY2023-24, reflecting a 6.7 percent growth rate. Nominal GDP at Current Prices in Q1 of FY2024-25 is Rs 77.31 lakh crore, compared to Rs 70.50 lakh crore in Q1 of FY2023-24, indicating a 9.7 percent growth rate.
Real GVA for Q1 of FY2024-25 is estimated at Rs 40.73 lakh crore, against Rs 38.12 lakh crore in Q1 of FY2023-24, representing a 6.8 percent growth rate. Nominal GVA in Q1 of FY2024-25 is estimated at Rs 70.25 lakh crore, up from Rs 63.96 lakh crore in Q1 of FY2023-24, showing a 9.8 percent growth rate.
The Reserve Bank of India (RBI) Governor, Shaktikanta Das, highlighted two factors that slightly reduced the growth rate: government spending (both Central and State) and sluggish growth in the agriculture sector. Government expenditure was lower in the first quarter, possibly due to the elections held from April to June 2024 and the enforcement of the model code of conduct by the Election Commission. The Governor noted that government spending is expected to increase in the upcoming quarters. Additionally, the agricultural sector is likely to perform better in the current fiscal year due to a good and widespread monsoon. The RBI forecasts an annual growth rate of 7.2 percent for FY2024-25.
