Growth Likely to Have Slowed in Q2 But No Significant Downside Risk to FY25 Projections: DEA

India's economic growth may have slowed in the September quarter, but overall there is not much downside risk to 6.5-7 per cent growth in the current fiscal year, Economic Affairs Secretary Ajay Seth said on Wednesday.

Seth said while some goods and services may not have have grown at the same pace as in the last year in the second quarter of the current fiscal year, data on e-way bills and e-invoices does not indicate any significant downside possibility to the full year 6.5-7 per cent growth projected in the Economic Survey.

The secretary also said food prices have been a concern but other than that, inflation is not a challenge for India.

On capex, Seth said the government's capital expenditure may see some undershooting of the Rs 11.11 lakh crore in the current fiscal year. But the capex will be higher than Rs 9.5 lakh crore in the last fiscal year.

"We started the year with estimates in the economic survey of 6.5-7 per cent growth. I don't see any significant downside risk to this... the numbers in the second quarter do indicate that some of the products or some of the services may not be at the same level where they were about a year back or even two quarters earlier.

"But thereafter, you look at some other indicators, especially I am looking at that in terms of the e-way bills or the e-invoices in the month of October, they tell a different number. That does not indicate that there is any significant possibility of any downside risk from 6.5-7 per cent goal that has been estimated at the beginning of the year," Seth said at a Ficci event here.

The Indian economy grew 6.7 per cent year-over-year in the April-June period of FY25. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally.

India grew 8.2 per cent in the 2023-24 fianncial year.