India's Q1 GDP Slows to Five-Quarter Low at 6.7%

India's GDP growth decelerated to 6.7% in April-June 2023 from 8.2% a year ago, mainly due to a downturn in the agriculture sector. Despite this, India remains the fastest-growing major economy, outpacing China's 4.7% growth in the same period. Manufacturing sector growth rose to 7%.

India's gross domestic product (GDP) slowed to a five-quarter low of 6.7 percent in the April-June period of this fiscal year, a decline from 8.2 percent in the same period last year, driven mainly by a poor performance in the farm sector, according to government data.

Despite the slowdown, India continues to be the fastest-growing major economy, outpacing China's GDP growth of 4.7 percent in the April-June quarter. Data from the National Statistical Office (NSO) released on Friday showed that the agriculture sector recorded a 2 percent growth, a drop from 3.7 percent in the first quarter of 2023-24.

However, growth in the manufacturing sector saw an uptick, accelerating to 7 percent in the first quarter of the current fiscal year, compared to 5 percent in the previous year. The last recorded GDP low was 6.2 percent in January-March 2023.

(With inputs from agencies.)