India’s GDP grew by 6.7% in Q1 FY25, slightly below the RBI’s forecast of 7.1%, reflecting moderate economic momentum.
The primary sector, including agriculture and mining, saw a decline, growing at just 2.7% compared to 4.2% in FY23.
Manufacturing boosted the secondary sector with 8.4% growth, up from 5.9% in FY23, driven by strong industrial activity.
The tertiary sector, including services, slowed to 7.2% growth in Q1 FY25, down from 10.7% in FY23, impacted by weaker demand.
Trade, hotels, and communications services growth slowed to 5.7%, a significant drop from 9.7% in FY23, reflecting softer consumer spending.
Financial and real estate services growth fell to 7.1% in Q1 FY25, down from 12.6% in FY23, amid global economic uncertainties.
Moody's forecasts India's GDP to grow at 7.2% in FY24, with solid growth and moderating inflation providing a positive outlook.