Latest GDP numbers cast a cloud over the great Indian growth story

New Delhi: During the first quarter of the current fiscal, real GDP grew by 6.7%, as against 7.8% in Q4, FY24 and 8.2% a year ago. The continuing decline in agriculture, private consumption along with a slowdown in government expenditure landed a sidewinder punch on the growth rate, which hit below 7%.

The estimate is within the consensus expectations that stretched a wide range of 6%-7.1%, but the slowdown in economic activity raises doubts if India can see another banner year, especially after FY24’s growth momentum, which seemed unstoppable, like the march of time.

Analysts had forewarned about the likely decline in growth citing lower government expenditure amid the 2024 election season. But what’s upsetting is the fact that all the other moving parts of the economy, taken together, couldn’t make up for the decline in the gold vein of government spending. In other words, private consumption, investments and agricultural sector that were expected to ginger up and aid growth, are yet to commit themselves fully.