GDP growth hits 2-year low of 5.4% in Q2 on weak consumption

Fiscal deficit in Oct touches 46.5%

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NEW DELHI: India's economic growth slowed to 5.4 per cent in the July-September quarter of FY25, marking a near two-year low as the manufacturing and mining sectors struggled and consumer spending weakened.

Despite this deceleration, India retained its position as the fastest-growing major economy, with China recording a lower GDP growth of 4.6 per cent in the same period, according to data released by the National Statistical Office (NSO) on Friday.

The latest GDP figures reveal a sharp drop from 8.1 per cent growth in the July-September quarter of FY24 and 6.7 per cent growth in the preceding quarter of this fiscal (April-June 2024). The last time India recorded slower growth was in the October-December quarter of FY23, when GDP expanded by just 4.3 per cent.