India’s GDP growth projected at 6.4% for FY25, below initial estimates of 6.5%-7%: NSO

India’s economy is projected to grow at 6.4% in the fiscal year ending March, slightly below the government’s initial estimate of 6.5%-7%, according to the National Statistics Office. This growth is based on the first advance estimates of GDP, which may be revised later as data improves. The Indian economy had expanded by 8.2% in 2023/24 and 7% in 2022/23.

As reported by Reuters, in nominal terms, GDP is expected to rise by 9.7%, down from the previously forecasted 10.5%. Government spending is estimated to rise by 4.1%, a notable increase from the 2.5% growth in the previous fiscal year, while private investment is expected to increase by 6.4%, lower than the 9% growth last year. Private consumption, which constitutes nearly 58% of India’s GDP, is expected to expand by 7.3%, a significant jump from 4% in the prior year.

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Sector-specific growth also shows mixed results. Manufacturing, which accounts for 17% of GDP, is projected to grow by 5.3%, a slowdown from 9.9% last year. Meanwhile, the construction sector is expected to see an 8.6% growth, down from 9.9%. Agricultural output, which makes up 15% of GDP and employs a large part of the workforce, is expected to grow by 3.8%, up from 1.4% in the prior year.