India’s economy grew by 6.5% in FY 2024-25, down from 9.2% in the previous fiscal, as per government data released on Friday.
| Photo Credit:
MOORTHY M/The Hindu
Indian economy grew by 6.5 per cent during Fiscal Year 2024-25, the government reported on Friday. It was 9.2 per cent during Fiscal Year 2023-24
* Real GDP has been estimated to grow by 6.5 per cent in FY 2024-25. Nominal GDP has witnessed a growth rate of 9.8 per cent in FY 2024-25
* In Q4 of FY 2024-25, Real GDP and Nominal GDP have been estimated to grow by 7.4 per cent and 10.8 per cent, respectively.
* The construction sector is estimated to record a growth rate of 9.4 per cent in FY 2024-25, followed by an 8.9 per cent growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.2 per cent growth rate in ‘Financial, Real Estate & Professional Services’ sector.
* During Q4 of FY 2024-25, ‘Construction’ sector has witnessed 10.8 per cent growth rate, followed by 8.7 per cent growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.8 per cent growth rate in ‘Financial, Real Estate & Professional Services’ sector.
* Primary Sector has seen 4.4 per cent growth rate as compared to growth rate of 2.7 per cent observed in previous financial year. During Q4, FY 2024-25, this sector has observed 5 per cent growth rate as compared to 0.8 per cent growth rate in Q4 of previous financial year.
* Private Final Consumption Expenditure (PFCE) has reported 7.2 per cent growth rate during FY 2024-25 as compared to 5.6 per cent growth rate in the previous financial year.
* Gross Fixed Capital Formation (GFCF) has recorded 7.1 per cent growth rate during FY 2024-25 and 9.4 per cent growth rate in Q4, FY 2024-25.
Commenting on the number, Aditi Nayar, Chief Economist with ICRA said that while FY2026 has begun with heightened uncertainty around global trade policies, the outlook for domestic drivers of growth, including private consumption and Government investment appears largely resilient, given the personal income tax relief, monetary easing, expectations of an above normal monsoon and lower food inflation, and the healthy growth in budgeted capex of the GoI and state governments.
“The outlook for merchandise and IT exports, and private capex, especially in export-oriented sectors, appears muted, although the relative tariff scenario will evolve as the year progresses. At present, ICRA forecasts GDP growth to dip slightly to 6.2 per cent in FY2026 from 6.5 per cent in FY2025,” she said.
Published on May 30, 2025
India’s economy grew by 6.5% in FY 2024-25, down from 9.2% in the previous fiscal, as per government data released on Friday.
| Photo Credit:
MOORTHY M/The Hindu
Indian economy grew by 6.5 per cent during Fiscal Year 2024-25, the government reported on Friday. It was 9.2 per cent during Fiscal Year 2023-24
* Real GDP has been estimated to grow by 6.5 per cent in FY 2024-25. Nominal GDP has witnessed a growth rate of 9.8 per cent in FY 2024-25
* In Q4 of FY 2024-25, Real GDP and Nominal GDP have been estimated to grow by 7.4 per cent and 10.8 per cent, respectively.
* The construction sector is estimated to record a growth rate of 9.4 per cent in FY 2024-25, followed by an 8.9 per cent growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.2 per cent growth rate in ‘Financial, Real Estate & Professional Services’ sector.
* During Q4 of FY 2024-25, ‘Construction’ sector has witnessed 10.8 per cent growth rate, followed by 8.7 per cent growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.8 per cent growth rate in ‘Financial, Real Estate & Professional Services’ sector.
* Primary Sector has seen 4.4 per cent growth rate as compared to growth rate of 2.7 per cent observed in previous financial year. During Q4, FY 2024-25, this sector has observed 5 per cent growth rate as compared to 0.8 per cent growth rate in Q4 of previous financial year.
* Private Final Consumption Expenditure (PFCE) has reported 7.2 per cent growth rate during FY 2024-25 as compared to 5.6 per cent growth rate in the previous financial year.
* Gross Fixed Capital Formation (GFCF) has recorded 7.1 per cent growth rate during FY 2024-25 and 9.4 per cent growth rate in Q4, FY 2024-25.
Commenting on the number, Aditi Nayar, Chief Economist with ICRA said that while FY2026 has begun with heightened uncertainty around global trade policies, the outlook for domestic drivers of growth, including private consumption and Government investment appears largely resilient, given the personal income tax relief, monetary easing, expectations of an above normal monsoon and lower food inflation, and the healthy growth in budgeted capex of the GoI and state governments.
“The outlook for merchandise and IT exports, and private capex, especially in export-oriented sectors, appears muted, although the relative tariff scenario will evolve as the year progresses. At present, ICRA forecasts GDP growth to dip slightly to 6.2 per cent in FY2026 from 6.5 per cent in FY2025,” she said.
Published on May 30, 2025
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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