After the RBI kept policy rates and stance unchanged, the GDP dropped to a 15-month low of 6.7 percent in Q1 of FY25 down from 8.2 percent in Q1 of FY24. The impulses of weaknesses in the growth have begun to manifest now. GDP growth data is even less than RBI’s outlook of 7.1 percent. It also fell short of the opinion of 52 economists surveyed by Reuters, who forecast a GDP growth of 6.9 percent. However, GVA stood better at 6.8 percent compared to 6.3 percent in Q4 of FY24 due to lower ‘net taxes on products’ arrived at by subtracting subsidies from indirect taxes. Among multiple contributing factors, the slowdown could be primarily due to three key reasons – reduced government spending, slower bank credit growth, and the impact of a severe heatwave on rural incomes and agricultural performance. A reference to the minutes of the Monetary Policy Committee (MPC) meeting held on August 6-8, 2024 will be relevant to a deep dive into various intricate interdependent, and interlinked dimensions of the implications of policy perspectives on the economy.