India shared its economic report for the second quarter (July-September 2024).
It shows the country’s growth has slowed down.
How Much Did India Grow?
GDP Growth of 5.4%:
GDP, or Gross Domestic Product, is the total value of all goods and services a country produces.
For the months of July, August, and September 2024, India’s GDP grew by 5.4%.
This means the economy grew, but at a slower speed compared to before.
Slower Than April-June 2024
In the first quarter of the financial year (April to June 2024), India’s GDP grew by 6.7%.
That was a faster rate than what was recorded for the second quarter.
Lowest Growth in Five Quarters
The growth of 5.4% is the slowest in five quarters (about 15 months). A quarter is a three-month period.
This shows that the economy is not growing as quickly as it was earlier.
Why Did Growth Slow Down?
Government Spending Reduced:
During general elections, the government spent less money on projects and programs.
When the government spends less, it can affect overall growth because there’s less money flowing in the economy to support businesses and services.
Optimistic Predictions:
Despite the slower growth, government officials are confident.
They believe the economy is still strong and could grow by 6.5% to 7% by the end of the financial year.
This estimate suggests that the slowdown is temporary, and better growth might come in the future.
