India’s GDP Growth Hits Four-Year Low at 6.4%

India’s real GDP growth is projected to slow to 6.4% in the financial year 2024-25, marking a four-year low. This is a significant drop from the 8.2% growth recorded in the previous fiscal year. The National Statistics Office (NSO) released these first advance estimates, which also show nominal GDP growth at 9.7%.

The slowdown is attributed to weaker performance across several sectors, with manufacturing expected to see the sharpest decline. Agriculture, however, is projected to improve, with a growth rate of 3.8% compared to 1.4% last year. Other sectors like construction and financial services are expected to grow at 8.6% and 7.3%, respectively.

Private final consumption expenditure (PFCE) is forecasted to grow at 7.3%, while government final consumption expenditure (GFCE) is expected to rise by 4.1%. These estimates are crucial for framing the Union Budget for 2025-26.