India's GDP Growth for Q1 FY25 at a Glance

GDP growth in the first quarter fell short of the RBI’s expectations. At 6.7 per cent, growth is still higher than the decadal average of 6.4 per cent for the first quarter.

Key Points:

• Private consumption grew by a robust 12.4 per cent in current prices.
• Investments also registered a healthy growth of 9.1 per cent in current prices with investment rate at 31 per cent.
• Government expenditure registered a growth of 4.1 per cent, which was slower but it must be kept in mind that the kii.
• Exports registered a growth of 8.4 per cent while imports slowed considerably both sequentially
• On the supply side, gross value added grew by 6.8 per cent.
• Core GVA, a component of private demand, also registered a growth of 7.3 per cent.
• Agriculture grew by a mere 2 per cent.

Despite the low number, the Q1FY25 throws up more positive trends than what the headline estimate suggests. Demand shows a largely positive picture with all heads except valuables showing positive growth. Robust consumption data reaffirms that the rural rebound remains strong. An uptick in agricultural growth in subsequent quarters on the back of a better monsoon will provide a strong impetus.