India’s GDP Growth Slows to 6.4% in FY25: NSO Estimates
India’s economic growth is set to decelerate in the financial year 2024-25, with the National Statistics Office (NSO) projecting a slower GDP growth rate of 6.4% compared to the previous fiscal year’s 8.2%. The Real GDP, or GDP at constant prices, is estimated to reach Rs 184.88 lakh crore in FY 2024-25, up from the provisional estimate of Rs 173.82 lakh crore in 2023-24.
Key Figures and Forecasts
The Nominal GDP, or GDP at current prices, is expected to climb to Rs 324.11 lakh crore in 2024-25, reflecting a growth rate of 9.7% from Rs 295.36 lakh crore in 2023-24. The Real Gross Value Added (GVA) is anticipated to hit Rs 168.91 lakh crore in 2024-25, showing a growth rate of 6.4%, down from 7.2% in the previous fiscal year.
In terms of sector-wise performance, the Agriculture and allied sector’s Real GVA is forecasted to expand by 3.8% in 2024-25, a substantial improvement from the 1.4% growth seen in 2023-24. The Construction sector and Financial, Real Estate & Professional Services sector are expected to show robust growth rates of 8.6% and 7.3% respectively in FY 2024-25.
Consumption Expenditure and Government Spending
Private Final Consumption Expenditure at Constant Prices is projected to grow by 7.3% in FY 2024-25, a significant improvement from the 4.0% growth recorded in the previous year. Government Final Consumption Expenditure at Constant Prices is also on the rise, with a growth projection of 4.1%, up from 2.5% in the previous financial year.
Expert Insights and Economic Outlook
Economists suggest that the slowdown in GDP growth could be attributed to various factors such as global economic conditions, domestic policies, and the ongoing COVID-19 pandemic. They emphasize the need for targeted interventions and policy reforms to stimulate economic growth and ensure sustainable development in the coming years.
As India navigates through these economic challenges, it is crucial for policymakers, businesses, and the general public to work together towards building a resilient and inclusive economy that can withstand external shocks and drive long-term prosperity for all.
It’s a reminder that economic growth is not just about numbers on a spreadsheet but impacts the lives of real people in tangible ways. From job opportunities to social welfare programs, GDP growth plays a crucial role in shaping the future of our nation. As individuals, we can contribute to this economic growth by making informed financial decisions, supporting local businesses, and advocating for policies that promote economic stability and prosperity for all. Let’s work together to build a brighter and more resilient future for India.