India’s economy is projected to grow at 6.4% in the financial year 2024-25, marking a four-year low, according to the first advance estimates of GDP released by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). This is a significant drop from the 8.2% growth recorded in the previous fiscal year.
GDP is a widely recognised indicator of a country’s economic performance over a specific period of time, focusing on the health of a nation’s economy.
The Real GDP, or GDP at Constant Prices, is estimated to reach Rs 184.88 lakh crore in 2024-25, up from Rs 173.82 lakh crore in 2023-24. Meanwhile, the Nominal GDP, which accounts for current prices, is expected to grow to Rs 324.11 lakh crore from Rs 295.36 lakh crore, reflecting a growth rate of 9.7%.
The Real Gross Value Added (GVA) is forecast to rise by 6.4%, reaching Rs 168.91 lakh crore in 2024-25, down from a growth rate of 7.2% in 2023-24. On the other hand, Nominal GVA is projected to grow by 9.3%, reaching Rs 292.64 lakh crore in the upcoming fiscal year.
The agriculture and allied sectors are expected to show significant recovery, with Real GVA growth projected at 3.8% in 2024-25, compared to a modest 1.4% growth in the previous year. The construction sector and the financial, real estate, and professional services sector are forecast to maintain robust growth at 8.6% and 7.3%, respectively.
Private Final Consumption Expenditure at Constant Prices, a key indicator of consumer spending, is expected to grow by 7.3% in 2024-25, up from 4.0% in the previous fiscal. Government Final Consumption Expenditure is also set to rise, with a growth projection of 4.1% compared to 2.5% last year.