India's GDP Growth Projected at 6.4% in FY25, Slowest Since Pandemic: Government Report

New Delhi (The Uttam Hindu): India's GDP growth for the financial year 2024-25 (FY25) is projected at 6.4%, according to the initial advance estimates released by the Ministry of Statistics and Programme Implementation on January 7, 2025. This marks a notable decline from the 8.2% growth recorded in FY24 and represents the slowest pace of growth since the COVID-19 pandemic, highlighting a potential economic slowdown.

The nominal GDP is estimated to grow by 9.7%, reaching approximately ₹324.11 lakh crore compared to ₹295.36 lakh crore in FY24. The first half of FY25 presented significant challenges with the economy expanding by 6.7% in the first quarter but slowing to 5.4% in the second quarter. However, a rebound is anticipated in the second half of the fiscal year, driven by growth in agricultural and industrial activities along with resilient rural demand.

The Reserve Bank of India (RBI) has adjusted its growth forecast for FY25 to 6.6%, citing concerns about persistent economic challenges such as inflation and subdued performance in certain sectors. Economists have observed mixed trends across industries with robust growth in the services sector contrasted by a slowdown in manufacturing. While there are expectations of recovery supported by increased fiscal spending and improved rural consumption, the current projections suggest a cautious outlook for India's economic growth in FY25.