India’s economic growth rate is estimated to hit a four-year low of 6.4 per cent in 2024-25, mainly on account of sluggish growth in the manufacturing and services sector, according to government data released today.
The estimated gross domestic product (GDP) rate in the current fiscal is significantly lower than 8.2 per cent witnessed in 2023-24.
“The real GDP has been estimated to grow by 6.4 per cent in FY 2024-25 as compared to 8.2 per cent in the Provisional Estimate of the GDP for FY 2023-24. The nominal GDP has witnessed a growth of 9.7 per cent in FY 2024-25 as against 9.6 per cent in FY 2023-24,” said the Ministry of Statistics and Programme Implementation in a statement. According to the data, the real GDP or the GDP at constant prices is estimated to attain a level of Rs 184.88 lakh crore in 2024-25 as against the Provisional Estimate of the GDP of Rs 173.82 lakh crore in 2023-24.
The 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. Later, it bounced back, as the GDP growth was 9.7 per cent in 2021-22, 7 per cent in 2022-23 and 8.2 per cent in 2023-24.
According to the data, the manufacturing sector output is expected to decelerate to 5.3 per cent from a high of 9.9 per cent recorded in the previous fiscal. Similarly, the services sector, comprising trade, hotels, transport and communications, is estimated to grow at 5.8 per cent as against 6.4 per cent in 2023-24. On the other hand, the agriculture and allied sector has shown a significant improvement, with the real GVA (gross value added) growth estimated at 3.8 per cent in FY25, a marked increase from the previous year’s 1.4 per cent. The construction sector and the financial, real estate and professional services sector are also expected to experience a strong growth. The construction sector’s real GVA is projected to rise by 8.6 per cent.
