India's economic growth slowed to a 15-month low of 6.7% in the April-June quarter.
The slowdown was attributed to "lower" government spending, influenced by the enforcement of the model code of conduct during the recent Lok Sabha elections.
RBI Growth Projections:
The Reserve Bank of India (RBI) had projected a growth rate of 7.1% for the first quarter.
However, the first advance estimates indicated a lower growth rate of 6.7%.
Growth Drivers:
Major sectors such as consumption, investment, manufacturing, services, and construction all registered growth rates of over 7%.
Factors Contributing to Slower Growth:
Two main factors contributed to the slight decrease in growth:
Lower government expenditure, both at the Central and State levels.
Agricultural sector performance.
Government expenditure was low during the first quarter, possibly due to the elections and the enforcement of the model code of conduct.
RBI Governor Shaktikanta Das expressed optimism that government expenditure would increase in the coming quarters, which would help support economic growth.
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