ECONOMY
GDP growth in FY25 estimated 6.4%, the lowest in the last four years
- IBJ Bureau
- Jan 08, 2025
India’s growth in Gross Domestic Product (GDP) is estimated to be at 6.4 per cent in 2024-25 (FY25), the Ministry of Statistics and Programme Implementation has said. The estimated growth has significantly dropped from 8.2 per cent in FY24 and will remain marginally lower than the RBI’s projection of 6.6 per cent.
“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. Nominal GDP has witnessed growth rate of 9.7 per cent in FY2024-25 over the growth rate of 9.6 per cent in FY2023-24,” the ministry has stated in its official release.
With 6.4 per cent, GDP growth is likely to hit the lowest level in four years.
The announcement has come weeks before the Union Budget 2025-26, to be tabled on February 1, 2025, by Finance Minister Nirmala Sitharaman.
The government data shows that agriculture and allied sector has shown a significant improvement as the real Gross Value Added (GVA) is estimated to grow by 3.8 per cent during 2024-25 as compared to the growth of 1.4 per cent last year.
The growth is also expected in construction as well as financial, real estate and professional services sectors, with real GVA projected to rise by 8.6 per cent and 7.3 per cent respectively.
Private Final Consumption Expenditure (PFCE), a key indicator of domestic households, has witnessed significant growth rate of 7.3 per cent during FY25. It was at 4 per cent during the pervious year.
Likewise, the Government Final Consumption Expenditure (GFCE) has also rebounded to 4.1 per cent as compared to the growth rate of 2.5 per cent in the previous financial year. GFCE is the government spending on goods and services.
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