India's GDP Growth Comes Down To 6.4 % For 2024-25: Data

The Ministry of Statistics and Programme Implementation has projected India's GDP growth to slow to 6.4% in FY2024-25, down from 8.2% in FY2023-24. Despite this decline, economic activity is expected to improve in the latter half of FY25, driven by agriculture, industry, and strong rural demand.

"Real GDP has been estimated to grow by 6.4 per cent in FY 2024-25 as compared to the growth rate of 8.2 per cent in the Provisional Estimate (PE) of GDP for FY 2023-24. Nominal GDP has witnessed a growth rate of 9.7 per cent in FY 2024-25 over the growth rate of 9.6 per cent in FY 2023-24," the Ministry of Statistics and Programme Implementation said in its official release.

Sectoral Growth Insights

Agriculture is anticipated to see a significant rise with real Gross Value Added (GVA) expected to grow by 3.8% in FY25, up from just 1.4% in FY24. The construction sector's real GVA is projected to increase by 8.6%, while finance, housing, and professional services are set for a 7.3% expansion.

Private Final Consumption Expenditure (PFCE) has risen by 7.3%, indicating better consumer confidence and spending power. Government Final Consumption Expenditure (GFCE) also saw an increase, growing by 4.1% compared to the previous year's 2.5%, reflecting higher government spending on goods and services.

RBI's Revised Estimates

The Reserve Bank of India (RBI) adjusted its GDP growth forecast for FY25 from an earlier estimate of 7.2% down to 6.6%. This revision is due to slower growth anticipated in the first half of the fiscal year.

Despite inflation reaching 5.8% in February 2024-exceeding the RBI's target of 4%-the central bank remains hopeful about economic growth spurred by rural demand, government investments, and exports.

Quarterly Growth Projections

The RBI's quarterly GDP growth estimates for FY25 are as follows: Q1 at 6.9%, Q2 at 7.3%, with Q3 and Q4 projected at 6.8% and 7.2%, respectively.