Since the Covid pandemic, India’s GDP will mark a four-year low of 6.4% as compared to 8.2% the previous year as per the First Advance Estimates of Annual Gross Domestic Product (GDP) for the Financial Year (FY) 2024-25 released by the Ministry of Statistics & Programme Implementation (MoSPI).
The GDP highlights the slow pace of economic activity to be witnessed by India in the last four years. Ministry of Statistics in its official statement on Tuesday stated, “Real GDP has been estimated to grow by 6.4% in FY 2024-25 as compared to the growth rate of 8.2% in Provisional Estimate (PE) of GDP for FY 2023-24.”
Despite the low economic growth projected for the upcoming year, the agriculture sector is expected to witness growth with the GVA estimated at 3.8% as compared to the growth of 1.4% in the previous year.
The Construction sector and the Financial, Real Estate & Professional Services sector is also expected to undergo strong growth with a growth rate of 8.6% as compared to 7.3% in the previous year.
In Private Final Consumption Expenditure (PFCE) at Constant Prices, a growth rate of 7.3% is expected against the growth rate of 4.0% in the previous Financial Year.
Government Final Consumption Expenditure (GFCE) at Constant Prices is predicted with a growth rate of 4.1% as compared to the growth rate of 2.5% in the previous Financial Year.
The unexpected deceleration led the Reserve Bank of India to revise its growth forecast for FY24 and lower it t 6.6% from 7.2%.
