India’s GDP Growth Expected to Slump to 6.4% in 2024-25, Lowest in Four Years

Chandigarh : India’s economic growth is forecasted to hit a four-year low of 6.4% for the fiscal year 2024-25, primarily due to slower growth in the manufacturing and services sectors, as per the latest government data. This marks a significant drop from the 8.2% growth recorded in 2023-24.

The estimated real GDP for 2024-25 stands at Rs 184.88 lakh crore, compared to Rs 173.82 lakh crore in the previous fiscal year, representing a slower growth pace. The nominal GDP has grown by 9.7% in FY 2024-25, slightly up from 9.6% in FY 2023-24.

This downturn in growth is the lowest since the pandemic year of 2020-21, when India experienced a contraction of 5.8%. However, the economy rebounded sharply in the subsequent years, with growth rates of 9.7% in 2021-22, 7% in 2022-23, and 8.2% in 2023-24.

The manufacturing sector, which showed robust growth of 9.9% in the previous fiscal, is projected to slow to 5.3%. Similarly, the services sector, which includes trade, hotels, transport, and communications, is expected to grow at 5.8%, down from 6.4% in 2023-24.

On the positive side, the agriculture and allied sectors have shown considerable improvement, with real GVA (Gross Value Added) growth expected to reach 3.8% in FY 2024-25, a significant increase from last year’s 1.4%. The construction and financial services sectors are also set to experience strong growth, with the construction sector’s GVA projected to rise by 8.6%.