India’s Gross Domestic Product (GDP) is expected to grow by 6.4% in the financial year 2024-25, down from the 8.2% growth recorded in 2023-24, according to the first advance estimates released by the Ministry of Statistics on Tuesday.
This projection is lower than the Reserve Bank of India’s (RBI) recent estimate of 6.6% for the current fiscal year. Despite this, India continues to retain its position as the fastest-growing major economy globally, while China’s growth rate is projected to fall below 5%.
The agriculture, construction, and services sectors have recorded a growth in performance compared to the previous year. Agriculture and allied sectors are estimated to grow by 3.8% in 2024-25, up from 1.4% in 2023-24. The construction sector and financial, real estate, and professional services sectors are projected to grow by 8.6% and 7.3%, respectively.
Private final consumption expenditure has increased by 7.3% during the fiscal year, up from 4% in the previous year, the official statement noted. The Government’s final consumption expenditure has also grown at a rate of 4.1% compared to 2.5% in the previous fiscal year, contributing to overall economic demand.
Releasing the first advance estimates for 2024-25, the National Statistical Office (NSO) stated, “Real GDP has been estimated to grow by 6.4% in FY2024-25 as compared to the growth rate of 8.2% in Provisional Estimate (PE) of GDP for FY2023-24.”
The estimates come ahead of the Union Budget 2024-25 and emphasize the importance of continued investments in infrastructure projects and sustained focus on agriculture.
India’s economy grew at 5.4% in the second quarter (July-September) of 2023-24, reflecting a slowdown compared to the previous quarter. This prompted the RBI to revise its annual growth projection for the year to 6.6%, down from 7.2%.