India's GDP likely to grow 6.4% in 2024-25, show first advance estimates

The Ministry of Statistics has confirmed that India's GDP growth projection for 2024-25 remains at 6.4%, a significant decline from the 8.2% growth observed in FY23. Despite a slow start in H1 FY25, the ministry expects agricultural and industrial activity to pick up in H2, alongside robust rural demand, which is anticipated to contribute towards a growth range of 6.4-6.8% by the end of the fiscal year. Nominal GDP is projected to grow by 9.7% in FY25, slightly up from 9.6% in the previous year. 

The agriculture sector has seen a marked improvement, with Real Gross Value Added (GVA) growth estimated at 3.8% in FY25, up from 1.4% in FY23. The construction sector is also expected to perform well, with a projected Real GVA growth of 8.6%. Similarly, the financial, real estate, and professional services sectors are projected to expand by 7.3%. Regarding expenditure, Private Final Consumption Expenditure (PFCE) is expected to grow by 7.3%, a sharp rise from 4% in the previous year, indicating a recovery in consumer confidence and spending power. Government Final Consumption Expenditure (GFCE) has rebounded, growing by 4.1%, compared to 2.5% last year. The Reserve Bank of India has revised its GDP growth forecast for FY25 to 6.6%, citing a weaker H1 but anticipating a recovery in the latter half due to factors such as rural consumption and strong services exports. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.