Indian Government Sets GDP Growth Forecast at 6.4% for 2024-25; Agriculture and Services Show Strong Recovery
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New Delhi, Jan 7 (NationPress) The projected growth of India’s Gross Domestic Product (GDP) is set at 6.4 percent for the fiscal year 2024-25, down from an impressive 8.2 percent growth recorded in 2023-24, based on the initial advance estimates released by the Ministry of Statistics on Tuesday.
This forecast is slightly lower than the recent estimate from the Reserve Bank of India (RBI), which projected a growth of 6.6 percent for the current fiscal year. Nevertheless, India continues to hold the title of the fastest-growing major economy globally, with China’s growth rate falling below 5 percent.
Key sectors such as agriculture, construction, and services have demonstrated significant growth, outpacing their performance from the previous year, as indicated by the data.
The agriculture and allied sectors are expected to grow by 3.8 percent in 2024-25, a notable increase from the 1.4 percent growth recorded last year. Furthermore, the construction sector is anticipated to achieve a robust growth rate of 8.6 percent, while the financial, real estate, and professional services sectors are expected to see a growth of 7.3 percent.
Additionally, there has been an uptick in private final consumption expenditure, which is forecasted to grow at 7.3 percent this fiscal year, compared to 4 percent in the previous year, according to the official statement.
The government’s final consumption expenditure has also rebounded, now estimated to grow at 4.1 percent compared to 2.5 percent growth in the prior financial year, contributing positively to overall economic demand.
In releasing the first advance estimates of national income for 2024-25, the National Statistical Office (NSO) stated, "Real GDP is estimated to grow by 6.4 percent in FY2024-25, in comparison to the provisional estimate of 8.2 percent for FY2023-24."
This data comes ahead of the Union Budget for 2024-25, highlighting the imperative to foster growth through continued investment in large-scale infrastructure projects and a sustained focus on the agriculture sector.
India’s economy recorded a GDP growth rate of 5.4 percent for the second quarter (July-September) of the current financial year, which marks a significant slowdown compared to the previous quarter.
The unexpected deceleration in the second quarter led the RBI to revise its growth forecast down to 6.6 percent, from an earlier estimate of 7.2 percent.
