Indian Economy To Grow 6.4% In 2024-25: Government Data

Last Updated: January 07, 2025, 17:10 IST

The Indian economic climate is approximated to expand at 6.4 percent in 2024-25 versus 8.2 percent in the previous

The Indian economic climate is approximated to expand at 6.4 percent in 2024-25 versus 8.2 percent in the previous , the National Statistical Office (NSO) claimed on Tuesday in its initial breakthrough quotes of nationwide accounts.

The forecast is less than the current Reserve Bank price quote of 6.6 percent for the existing finishing March 2025.

In December 2024, RBI reduced its development projection for the existing monetary to 6.6 percent from 7.2 percent forecasted in June.

Releasing the initial breakthrough quotes of nationwide revenue for 2024-25, the NSO claimed, “actual GDP has actually been approximated to expand by 6.4 percent in FY2024-25 as contrasted to the development price of 8.2 percent in Provisional Estimate (PE) of GDP for FY2023-24”.

Key Highlights:

• Real GDP has been estimated to grow by 6.4% in FY 2024-25 as compared to the growth rate of 8.2% in Provisional Estimate (PE) of GDP for FY 2023-24.
• Nominal GDP has witnessed a growth rate of 9.7% in FY 2024-25 over the growth rate of 9.6% in FY 2023-24.
• Real GVA has grown by 6.4% in FY 2024-25 over the growth rate of 7.2% in FY 2023-24.
• Nominal GVA has shown a growth rate of 9.3% in FY 2024-25 as compared to the growth rate of 8.5% in FY 2023-24.
• Real GVA of Agriculture and allied sector has been estimated to grow by 3.8% during 2024-25 as compared to the growth of 1.4% witnessed during the last year, i.e., 2023-24.
• Real GVA of ‘Construction’ sector and ‘Financial, Real Estate & Professional Services’ sector has been estimated to observe good growth rates of 8.6% and 7.3%, respectively during the FY 2024-25.
• Private Final Consumption Expenditure (PFCE) at Constant Prices, has witnessed a growth rate of 7.3% during FY 2024-25 over the growth rate of 4.0% in the previous Financial Year.
• Government Final Consumption Expenditure (GFCE) at Constant Prices, has rebounded to a growth rate of 4.1% as compared to the growth rate of 2.5% in the previous Financial Year.

Aditi Nayar, Chief Economist and Head – Research & Outreach, ICRA, said, “The NSO’s FAE for India’s GDP and GVA growth of 6.4% each in FY2025, is slightly lower than our forecast of 6.5% each, led by mining, manufacturing, and services.”

Nayar included that the NSO has successfully unconditionally fixed the development in the GDP and GVA for H2 FY2025 at 6.7% and 6.6%, specifically, “a light 10-20 bps less than our estimates for the very same.”

“In our view, the GDP growth in FY2026 will be crucially influenced by global uncertainties as well as domestic uncertainties, amidst considerable base effects. Benefitting from an anticipated capex push in the upcoming Budget, we project the GDP growth at 6.5% in FY2026.”