Q1 GDP data: Investment growth comes up short despite govt capex push

This was despite heavy capital expenditure by the Centre. That grew 57 per cent at Rs 2.8 trillion in the Q1 of FY'24 year-on-year

Investment growth moderated slightly in the economy during the first quarter (Q1) of the current financial year (2023-24, or FY24), notwithstanding the front-loading of capital expenditure (capex) by the Centre. This was also the case despite a pick-up in demand during the period after two dismal consecutive quarters.

Although growth in gross fixed capital formation (GFCF), representing investment, fell to a five-quarter low of 7.96 per cent, the comparison with the first two quarters of the previous year is a bit askew due to the low year-on-year (Y-o-Y) base of those periods. When comparing the investment growth rate in Q1