The country's economy has suffered a major blow. The growth rate of this quarter has been the lowest compared to the last five quarters. In the first quarter of April-June 2024, the growth rate has decreased to 6.7 percent. Last year, the same rate was 7.8 percent.
The country's gross domestic product fell to a record low of 6.7 percent in the first quarter of the current financial year. The poor performance of the agriculture sector seems to have had a major impact on the GDP. The same GDP was at 7.8 percent in the January-March quarter. The average growth rate of the last financial year was 8.2 percent. Compared to these figures, the GDP in this quarter has fallen drastically.
Economists had expressed the expectation that the growth of the Indian economy would slow down due to the reduction in government spending after the Lok Sabha elections.
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Moody's raises GDP forecast...
Moody's had expressed its forecast a day before the country's growth rate. Moody's has raised its real GDP growth forecast to 7.2 percent from 6.8 percent in 2024, while India's growth rate forecast for 2025 has been raised to 6.6 percent from 6.4 percent.