India’s GDP growth has come down to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed due to poor performance of the manufacturing sector. The National Statistical Office released this data today on 29 November. Earlier, the growth was 4.3% in the third quarter of 2023. At the same time, it was 8.1% in the same quarter a year ago (Q2FY24). In the previous quarter i.e., Q1FY25, it was 6.7%. India’s GVA has grown at the rate of 5.6% in the July-September quarter. GVA growth was 7.7% in the same quarter a year ago. At the same time, GVA growth was 6.8% in the previous quarter. Sector wise growth on year-on-year basis (FY25 Vs FY24) India is still the fastest growing economy among major countries Despite slow GDP growth, India still remains the fastest growing economy among major economies. China’s GDP growth was 4.6% in the July-September quarter this year. At the same time, Japan’s GDP has grown at the rate of 0.9%. GDP measures the value of goods and services GDP i.e. Gross Domestic Product measures the total value of goods and services produced in the country within a period. It also includes foreign companies which produce while staying within the country’s borders. GDP tells the health of the economy. There are two types of GDP, real and nominal GDP. In real GDP, the value of goods and services is calculated on the value of the base year or stable price. At present, the base year for calculating GDP is 2011-12. At the same time, nominal GDP is calculated on the current price. What is Gross Value Added i.e. GVA? In simple words, GVA indicates the total output and income of an economy. It tells how much goods and services were produced in a given period after deducting the input cost and price of raw material. It also tells how much production took place in a particular area, industry or sector. From the perspective of National Accounting, the figure obtained after deducting subsidy and tax from GDP at the macro level is GVA. If you look at it from the production front, you will find it to be an item that balances the National Accounts.
