GDP Growth Likely to Slip to 4-Year Low of 6.4% in FY25

Slowest since the pandemic-hit year

India's economic growth rate is projected to decline to a four-year low of 6.4 per cent in 2024-25, primarily due to weak performance in the manufacturing and services sectors, as per government data released on Tuesday.

The estimated GDP growth of 6.4 per cent marks the slowest pace since the pandemic-hit year of 2020-21, when the economy contracted by 5.8 per cent. In comparison, growth stood at 9.7 per cent in 2021-22, 7 per cent in 2022-23, and 8.2 per cent in the fiscal year ending March 2024.

The first advance estimates of National Income for 2024-25 released by the National Statistics Office (NSO) is lower than the 6.6 per cent projected by the Reserve Bank in December 2024. It is also a tad lower than the finance ministry's initial projection of 6.5-7 per cent.