India's GDP Growth Slows to 15-Month Low: RBI Guv
By Rediff Money Desk, Bhubaneswar Aug 31, 2024 15:10
India's GDP growth slowed to 6.7% in Q1 FY24 due to lower government spending, according to RBI Governor Shaktikanta Das. He attributed the slowdown to the model code of conduct during the Lok Sabha elections.
![India's GDP Growth Slows to 15-Month Low: RBI Guv](https://im.rediff.com/money/2020/aug/06gdp1.jpg)
Illustration: Dominic Xavier/Rediff.com
Bhubaneswar, Aug 31 (PTI) The slowing of India's economic growth to a 15-month low of 6.7 per cent in the April-June quarter was due to "lower" government spending in the wake of the enforcement of the model code of conduct for the recent Lok Sabha polls, RBI Governor Shaktikanta Das said here on Saturday.
The RBI had projected a growth rate of 7.1 per cent for the April-June quarter of this fiscal.
"The Reserve Bank projected a growth rate of 7.1 per cent for the first quarter. However, the first advance estimation data released by the National Statistical Office showed the growth rate at 6.7 per cent," Das told reporters here.
The components and main drivers responsible for the GDP growth like consumption, investment, manufacturing, services and construction have registered a growth of more than 7 per cent, he said.
Only two aspects have pulled the growth rate slightly down. Those aregovernment (both central and state) expenditure and agriculture, the RBI governor pointed out.
He said the government expenditure was low during the first quarter perhaps due to elections (April to June) and operation of model code of conduct by the Election Commission.
"We would expect the government expenditure to pick up in coming quarters and provide the required support to growth," Das said.
Similarly, the agriculture sector has recorded a minimal growth rate of around 2 per cent in the April to June quarter. However, the monsoon was very good and spread all over India except a few areas. So, everyone is optimistic and positive about the agriculture sector, he noted.
"Under these circumstances, we have reasonably confident expectations that the annual growth rate of 7.2 per cent projected by the RBI will be materialized in coming quarters," the governor asserted.
The RBI had projected a growth rate of 7.1 per cent for the April-June quarter of this fiscal.
"The Reserve Bank projected a growth rate of 7.1 per cent for the first quarter. However, the first advance estimation data released by the National Statistical Office showed the growth rate at 6.7 per cent," Das told reporters here.
The components and main drivers responsible for the GDP growth like consumption, investment, manufacturing, services and construction have registered a growth of more than 7 per cent, he said.
Only two aspects have pulled the growth rate slightly down. Those aregovernment (both central and state) expenditure and agriculture, the RBI governor pointed out.
He said the government expenditure was low during the first quarter perhaps due to elections (April to June) and operation of model code of conduct by the Election Commission.
"We would expect the government expenditure to pick up in coming quarters and provide the required support to growth," Das said.
Similarly, the agriculture sector has recorded a minimal growth rate of around 2 per cent in the April to June quarter. However, the monsoon was very good and spread all over India except a few areas. So, everyone is optimistic and positive about the agriculture sector, he noted.
"Under these circumstances, we have reasonably confident expectations that the annual growth rate of 7.2 per cent projected by the RBI will be materialized in coming quarters," the governor asserted.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 15.63 ( -4.17)
- 51716103
- Srestha Finvest
- 1.94 ( -1.02)
- 39556969
- Inventure Growth & S
- 2.47 ( -19.81)
- 31916723
- Genpharmasec Ltd
- 3.51 ( -4.88)
- 21009955
- GTL Infrastructure
- 2.68 ( -0.37)
- 16825789
MORE NEWS
![Google to Explore...](https://im.rediff.com/80-80/money/2024/may/24may-pixel.jpg)
Google to Explore Pixel 8 Manufacturing, AI...
Google signs MoU with Tamil Nadu government to explore Pixel 8 manufacturing, AI skill...
![Assam Govt...](https://im.rediff.com/80-80/money/2019/jan/31tea.jpg)
Assam Govt Focuses on Tea Quality, Urges...
Assam Chief Secretary calls for prioritizing quality over quantity in tea production,...
Mumbai Property Registrations to Rise 7% in August
Property registrations in Mumbai's municipal region are expected to increase by 7% in...