Manufacturing dragged the economic growth based on Gross Domestic Products (GDP) to 5.4 per cent during July-September quarter of current fiscal year. It was 6.7 per cent during April-June quarter and 8.1 during corresponding quarter of last fiscal.

According to data released by the Statistics Ministry, real GVA (Gross Value Added) has grown by 5.6 per cent in Q2 of FY25 against the 7.7 per cent in Q2 of the previous financial year. Nominal GVA witnessed a growth rate of 8.1 per cent in Q2 of FY25 against 9.3 per cent growth rate in Q2 of FY24.

Despite sluggish growth observed in manufacturing (2.2 per cent) and mining & quarrying (-0.1 per cent) sectors in Q2 of FY25, real GVA (Gross Value Added) in H1 (April-September) has recorded a growth rate of 6.2 per cent. Agriculture and allied sector has bounced back by registering a growth rate of 3.5 per cent in Q2 of FY25 after sub-optimal growth rates ranging from 0.4 per cent to 2 per cent observed during previous four quarters.

In construction sector, sustained domestic consumption of finished steel has resulted 7.7 per cent and 9.1 per cent growth rates respectively in Q2 and H1 of FY25. Tertiary sector has observed a growth rate of 7.1 per cent in Q2 of FY25, as compared to the 6 per cent in Q2 of the previous financial year.

In particular, trade, hotels, transport, communication and services related to broadcasting has seen a growth rate of 6 per cent in Q2 of FY25, up from 4.5 per cent in Q2 of FY24. Private Final Consumption Expenditure (PFCE) has witnessed a growth rate of 6 per cent and 6.7 per cent respectively in Q2 and H1 of the FY 25, an increase from the growth rate of 2.6 per cent and 4 per cent in Q2 and H1 of the previous financial year, respectively.

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