Provisional estimate of Real GDP records 6.5% growth in FY 2024-25

India's gross domestic product (GDP) grew by 6.5% in the financial year (FY) 2024-25, according to provisional estimates.

- Kishore Kumar Biswas

This rate is the lowest after Covid period. This marks a slowdown from the 9.2% growth recorded in FY 2023-24. However, a notable improvement was observed in the primary sector, particularly agriculture, which expanded by 4.4% compared to 2.7% in the previous fiscal year.

Private Final Consumption Expenditure (PFCE) also showed strong growth, rising by 7.2%. In contrast, Gross Fixed Capital Formation (GFCF) grew at a slower pace of 7.1%, down from 8.1% the year before. Both PFCE and GFCF are critical components for sustaining economic output. As a share of GDP, PFCE stood at 56.5% and GFCF at 9.1% in FY 2024-25, compared to 56.1% and 9.5%, respectively, in the previous year.

A major concern, however, is the slowdown in the manufacturing sector, which grew by only 4.5%, a sharp decline from the impressive 12.3% growth recorded in FY 2023-24.

Fourth Quarter Performance of FY 2024-25