New Delhi: Logging its slowest growth in four years, India’s gross domestic product (GDP) is expected to grow at 6.4% in the ongoing fiscal 2024-25 (FY25), as per First Advance Estimate released by National Statistics Office (NSO) on Tuesday.
“Real GDP has been estimated to grow by 6.4% in FY 2024-25 as compared to the growth rate of 8.2% in Provisional Estimate (PE) of GDP for FY 2023-24. Nominal GDP has witnessed a growth rate of 9.7% in FY 2024-25 over the growth rate of 9.6% in FY 2023-24.,” Ministry of Statistics and Programme Implementation (MoSPI) said in a statement.
“Real GVA has grown by 6.4% in FY 2024-25 over the growth rate of 7.2% in FY 2023-24,” it further said.
India’s GDP growth rate slowed down to seven-quarter low in the July-September quarter (Q2) of the current financial year. The Q2 print was much below the expectations of economists, policy-makers and market-watchers. The dip in growth rate has led to downward revision in the GDP growth for the current fiscal.
The slowdown in GDP growth rate in Q2 has largely been attributed to reduced capital expenditure by the government due to extended election season in the first half of the year.
The NSO estimate has pegged the growth in agriculture and allied sector at 3.8% during 2024-25 as compared to the growth of 1.4% witnessed during the last year that is 2023-24.
“Real GVA of ‘Construction’ sector and ‘Financial, Real Estate & Professional Services’ sector has been estimated to observe good growth rates of 8.6% and 7.3%, respectively during the FY 2024-25,” the official statement said.
The statement said that Private Final Consumption Expenditure (PFCE) at constant prices has witnessed a growth rate of 7.3% during FY25 over the growth rate of 4.0% in the previous financial year.
“Government Final Consumption Expenditure (GFCE) at Constant Prices, has rebounded to a growth rate of 4.1% as compared to the growth rate of 2.5% in previous Financial Year,” it said.
UNI
