India’s economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, mainly on account of poor showing by the manufacturing and services sector, according to government data .
New Delhi: The Indian economy is estimated to grow at 6.4 per cent, a four-year low, in FY24 in 2024-25 against 8.2 per cent in the previous fiscal year, the National Statistical Office (NSO) said on Tuesday in its first advance estimates of national accounts.
The projection is lower than the recent Reserve Bank estimate of 6.6 per cent for the current fiscal year ending March 2025. It is also a tad lower than the finance ministry’s initial projection of 6.5-7 per cent.
India’s economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, mainly on account of poor showing by the manufacturing and services sector, according to government data. .
The gross domestic product (GDP) rate of 6.4 per cent will be the lowest since the Covid year (2020-21) when the country witnessed a negative growth of 5.8 per cent. It was 9.7 per cent in 2021-22; 7 per cent in 2022-23; and 8.2 per cent in the last fiscal ended March 2024.
Releasing the first advance estimates of national income for 2024-25, the NSO said, “real GDP has been estimated to grow by 6.4 per cent in FY2024-25 as compared to the growth rate of 8.2 per cent in Provisional Estimate (PE) of GDP for FY2023-24”.
According to the advance estimates, that will be factored in the new Budget to be presented by Finance Minister Nirmala Sitharaman, on Feb 1, the real Gross Value Added (GVA) is expected to expand by 6.4 per cent in FY25, down from 7.2 per cent in FY24.
In contrast, nominal GVA is projected to grow at 9.3 per cent in FY25, slightly higher than the 8.5 per cent growth in the previous fiscal year.