India’s GDP growth sharply disappointed in Q2 FY25, as it slipped to a 7-quarter low of 5.4%YoY compared to 6.7% in Q1 FY25.
Download ReportQuantEco Research || India Q2 FY25 GDP - Shaking things up
India’s Q2 FY25 was significantly lower than market expectations, the median estimate for which was pegged at 6.5% with the downdraft was much stronger than expected. A 7.0% GDP growth this year now looks highly improbable even with a rebound in consumption and government capex spending in H2 FY25. The past impact of monetary and regulatory tightening, post COVID normalization, high inflation for essentials/non-discretionary items (such as food and mobile services) along with rise in global uncertainties as Trump assumes power in Jan 2025, are not going to make H2 FY25 growth conditions any easier. We revise lower our FY25 growth forecast to 6.4% (implying H2 FY25 growth of 6.6-6.7%).