India’s GDP growth forecast slows to 6.4 pc in FY 2024-25

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New Delhi, January 7

India’s real GDP growth is forecast to moderate to 6.4% in FY 2024-25, down from 8.2% in the previous fiscal year, according to the First Advance Estimates released by the National Statistics Office (NSO). The estimates show that nominal GDP is projected to grow by 9.7% in FY 2024-25, slightly higher than the 9.6% increase in FY 2023-24.

The estimates indicate a slowdown in real Gross Value Added (GVA), which is expected to grow by 6.4% in FY 2024-25, compared to 7.2% growth in the previous year. Nominal GVA is set to rise by 9.3%, compared to 8.5% last year.

In terms of sectors, the agriculture and allied sectors are expected to see a notable recovery, with real GVA growth projected at 3.8% in FY 2024-25, up from 1.4% in FY 2023-24. Meanwhile, the construction and financial, real estate, and professional services sectors are expected to maintain strong growth, with real GVA estimated to rise by 8.6% and 7.3%, respectively.

Private Final Consumption Expenditure (PFCE) at constant prices is projected to grow by 7.3%, a significant rebound from the 4.0% growth in the previous fiscal year. Government Final Consumption Expenditure (GFCE) also saw an improvement, with growth estimated at 4.1%, up from 2.5% in FY 2023-24.

The real GDP at constant prices for FY 2024-25 is estimated to reach ₹184.88 lakh crore, up from ₹173.82 lakh crore in FY 2023-24.