India’s economy is showing signs of a cyclical adjustment, gradually settling into a sustainable growth trajectory after three years of strong recovery post-pandemic. The Q2FY25 GDP data reflects both challenges and opportunities as the country navigates this transition. Key Highlights of Q2FY25 1. Slower Growth in GDP Real GDP growth for Q2FY25 decelerated to 5.4% year-on-year (YoY) , the lowest in seven quarters. This marks a decline from 6.7% in Q1FY25 and 8.1% in Q2FY24 . The slowdown was primarily driven by weaker growth in private consumption and gross capital formation, two major components of domestic demand. On the brighter side: Government spending picked up. The external sector contributed positively as exports grew while imports contracted. 2. Sectoral Analysis Industrial Sector : Registered a significant slowdown due to a high statistical base effect, pulling down overall growth. Services Sector : Grew at 7.1% in Q2 , down from 7.7% in Q1 , but still strong enough to un...