India's gross domestic product grew at 6.7 percent in the first quarter of the fiscal year 2024-25, marking the slowest pace in almost five quarters, official data showed. 

In its latest report, the National Statistics Office said that the slowdown in GDP growth was due to reduced government spending during elections. 

India's GDP had witnessed a growth rate of 7.8 percent in the previous quarter, while the economy expanded by 8.2 percent in the same period of the previous year.

India: The fastest growing major economy

Despite losing the pace of growth in the first quarter, India still remains the fastest-growing major economy in the world, as China's economy expanded by 4.8 percent during the same period. 

"Real GDP or GDP at constant prices in the first quarter of 2024-25 is estimated at Rs 43.64 lakh crore, against Rs 40.91 lakh crore in Q1 of 2023-24, showing a growth rate of 6.7 percent," said the Ministry of Finance in a statement. 

According to experts, a high base effect, adverse weather conditions, and restrictions on government activities due to the election code of conduct during the quarter were some of the crucial factors behind the slowing of GDP. 

Reserve Bank's move to bolster economic growth

Moreover, the Reserve Bank of India's decision to keep the repo rate unchanged at 6.5 percent since February was another factor behind the deceleration of the GDP. 

Experts believe that a decrease in retail inflation could prompt the apex bank to lower the interest rate later this year, and such a move could accelerate household spending and investments, thus contributing to the country's economic growth in the coming months.

According to the report, the agricultural sector in India expanded by 2 percent in the first quarter, representing an improvement from 1.1 percent in the previous quarter. 

On the other hand, the manufacturing sector, which accounts for 17 percent of the nation's GDP witnessed an expansion of 7 percent in the first quarter, compared to the same period in the previous year. 

The report further highlighted that capital investments in India also rose by 7.4 percent in the first quarter, compared to 6.5 percent in the previous three months.