'GDP growth likely to be 6.3% in FY25, tad below govt estimates'

The GDP growth is expected to be about 6.3 per cent in the current fiscal year, a tad lower than the government's estimates of 6.4 per cent, owing to several factors such as weak demand, SBI research report said on Wednesday.

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According to the first advance estimates (FAE) of National Income for 2024-25 released by the National Statistics Office (NSO), released on Tuesday, India's economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, because of poor showing by the manufacturing and subdued investments.

Historically, the difference between the estimates of the Reserve Bank of India (RBI) and the NSO is always in the range of 20-30 bps and hence the 6.4 per cent estimate for the 2024-25 fiscal year is along expected and reasonable lines, the SBI's research report 'Ecowrap' said.

"We, however, believe that GDP (gross domestic product) growth for FY25 could be around 6.3 per cent, with downward bias," it said.