India’s GDP Growth Projected at 6.4% for 2024-25

The National Statistical Office (NSO) has projected India’s Gross Domestic Product (GDP) to grow by 6.4% in the financial year 2024-25, a deceleration from the 8.2% growth recorded in 2023-24.

Sectoral Performance

Agriculture and Allied Sectors: Estimated to expand by 3.8% in 2024-25, a significant improvement from the 1.4% growth in 2023-24.

Construction: Projected to grow by 8.6%, indicating robust activity in infrastructure development.

Financial, Real Estate, and Professional Services: Expected to increase by 7.3%, reflecting sustained demand in these sectors.

Consumption Expenditure

Private Final Consumption Expenditure: Anticipated to rise by 7.3% during the fiscal year, up from 4% in the previous year, signaling stronger consumer spending.

Government Final Consumption Expenditure: Forecasted to grow at 4.1%, compared to 2.5% in the prior fiscal year, contributing to overall economic demand.

Comparative Growth Rates

Despite the slowdown, India is expected to maintain its status as the fastest-growing major economy globally, with China’s growth rate projected to fall below 5%.

Implications for Policy and Investment

The revised growth estimates underscore the importance of continued investments in infrastructure projects and a sustained focus on agriculture to bolster economic performance.

Recent Economic Indicators

In the second quarter (July-September) of 2023-24, India’s economy grew by 5.4%, reflecting a slowdown compared to the previous quarter. This prompted the Reserve Bank of India (RBI) to revise its annual growth projection for the year to 6.6%, down from 7.2%.

Summary of the news