India’s Economic Growth Slows to 5.4% in Q2, Raising Concerns

Government and private sector spending sluggish, with manufacturing and consumption underperforming, as policymakers weigh responses.

India's GDP growth for the July-September 2024 quarter fell to 5.4%, the lowest in seven quarters, missing projections of over 6%.
The slowdown is attributed to weak manufacturing output, reduced government capital expenditure, and tepid private sector investment.
High consumer inflation, stagnant private incomes, and declining urban consumption have further dampened economic momentum.
The government expects growth to pick up in the second half of FY25, bolstered by increased public spending and a strong agricultural harvest.
Global economic challenges, including U.S. trade policies and China's economic slowdown, pose additional headwinds for India's growth trajectory.