India's GDP expected to fall below 6.5% in FY25 amid slowdown in GDP growth in second quarter: SBI

India's Gross Domestic Product (GDP) is expected to autumn beneath 6.5 per cent for the existent fiscal twelvemonth 2025, arsenic GDP maturation successful the 2nd 4th (Q2 FY25) slowed to 5.4 per cent, according to a study by the State Bank of India (SBI).

The study highlighted that the existent GDP maturation successful the archetypal fractional (H1 FY25) stood astatine 6.0 per cent, with a projected maturation of 6.5-6.8 per cent successful the 2nd fractional (H2).

As per study the manufacturing-led slowdown importantly impacted the wide economical performance. The manufacture sector's maturation declined to a six-quarter debased of 3.6 per cent successful Q2, contributing to the subdued GDP numbers.

It said, "With 6.0 per cent existent GDP maturation successful H1 FY25, the wide maturation for afloat fiscal would beryllium little than 6.5% (assuming 6.5-6.8% maturation successful H2). This manufacturing led slowdown gives a sketchy speechmaking erstwhile juxtaposed against non-impulsive recognition growth".

The study stated that the incremental maturation successful the manufacture assemblage was conscionable Rs 42,515 crore successful Q2 FY25 compared to Rs 1.4 lakh crore successful the corresponding play of the erstwhile year, marking a diminution of astir Rs 1 lakh crore successful incremental terms.

It added, "After 7-quarters, GDP maturation plunged beneath 6.0 per cent people successful Q2 FY25 chiefly owing to 3.6 per cent maturation successful manufacture sector".

Despite immoderate resilience successful different sectors, the sluggish concern show weighed heavy connected the economy.

The services assemblage grew by 7.1 per cent successful Q2 FY25, somewhat higher than 6.0 per cent successful Q2 FY24 but astir level compared to the 7.2 per cent maturation successful Q1 FY25. The agriculture sector, which has been consistently performing good since the pandemic, grew by 3.5 per cent successful Q2 (compared to 1.7 per cent successful Q2 FY24).

However, its publication to wide maturation remained modest, with a weighted publication of conscionable 40 ground points.

The Gross Value Added (GVA) maturation for Q2 stood astatine 5.6 per cent, portion nominal GDP grew by 8 per cent. Notably, this is the archetypal clip successful 7 quarters that GDP maturation has fallen beneath the 6.0 per cent mark, highlighting the challenges faced by the economy.

The study suggested that year-on-year comparisons whitethorn supply a skewed communicative and emphasizes focusing connected incremental growth. While the Indian system has shown resilience successful the past, the existent slowdown signals a impermanent intermission successful the maturation story, driven by broad-based sluggishness successful the concern sector.