India's GDP Growth Cools to 6.7%

Q1 2024-25 Marks Five Quarters of Declining Growth

Economic Expansion at Slowest Pace in Years

India's economy has recorded its slowest growth in five consecutive quarters, with the GDP expanding by 6.7% in Q1 2024-25, according to data released by the Central Statistical Organization (CSO).

This marks a significant deceleration from the 8.4% growth rate registered in the previous quarter and is the lowest growth rate since Q1 2021-22.

The moderation in growth is attributed to several factors, including a slowdown in global demand, rising interest rates, and geopolitical uncertainties.

Consumer spending, which accounts for roughly 60% of India's GDP, has weakened amid high inflation and rising interest rates.

Investment growth has also slowed due to uncertainty about the economic outlook.

Despite the slowdown, the Indian economy is still expected to grow by around 6.5% in 2024-25, according to estimates from the International Monetary Fund (IMF).

This growth rate would make India one of the fastest-growing major economies in the world.

However, the government will need to address the factors that are contributing to the slowdown in order to sustain economic growth in the long term.