India’s Growth Slows to Pre-Pandemic Levels: Report

• India’s economic growth is slowing, with key indicators returning to single-digit, pre-pandemic levels in June.
• Bank loan growth fell to 9% from 16% a year ago.
• GST revenue growth was 6.2%, down from 11% last year.

GG News Bureau
New Delhi, 18th July: A recent financial review by Nuvama Wealth indicates that India’s anticipated economic surge, despite the Reserve Bank of India’s (RBI) repo rate cuts and liquidity infusions, is struggling to maintain momentum. Key indicators are now slipping back to single-digit, pre-pandemic growth rates in June 2025.

According to RBI data, India’s annual bank loan growth has plummeted to just 9% as of June 2025, a significant drop from 16% a year ago. This contraction signals weaker demand from both businesses and consumers.

Key Economic Indicators Show Deceleration
GST revenue growth reached only 6.2% year-on-year in June 2025, with total collections at ₹1.85 lakh crore, down from 11% in June 2024. Several states are experiencing negative or stagnant growth, and June marked a sequential decline after stronger April and May figures.

Total exports (goods and services) have seen a modest increase of just 5–6% in 2025, falling far short of the double-digit growth observed in FY23. This moderation is attributed to a global slowdown, trade volatility, and softer domestic consumption.

Consumer demand also appears muted. Passenger vehicle sales dropped by 6.3% year-on-year in June 2025, contrasting with a healthy 7% growth a year earlier. Property sales and values in India’s top cities have drastically slowed to just 4% growth, a sharp decline from last year’s 28% spurt. While recent RBI rate cuts are providing some stability, cautious buyer sentiment and tighter borrowing norms continue to constrain overall growth.

Corporate and Industrial Sectors Reflect Trends
Wage growth among BSE 500 companies is down to 6% from 12% last year, reflecting tighter corporate margin environments. Profit growth rate (excluding oil marketing companies) has halved to 10% from 21%, though experts still anticipate double-digit earnings in the coming years if macro stability persists.

Furthermore, core sector growth (eight key industries) stands at just 3% in June 2025, compared to 8% a year ago, underscoring a broader slowdown in industrial expansion.

While India is widely projected to remain a global growth leader in the medium term, these recent figures highlight a return to more cautious, pre-pandemic levels of expansion. Ongoing global trade volatility, high-base effects, and weak private credit demand are cited as primary reasons for this deceleration. Policymakers are expected to closely monitor these developments as they consider further measures to reignite demand and sustain momentum.