India's GDP To Grow By 6.4% in FY 2024-25: Govt Data

India's economy is projected to grow at a slower pace in the financial year 2024-25, with the first advance estimates indicating a real GDP growth rate of 6.4%. This marks a decline from the 8.2% growth seen in the provisional estimates for FY 2023-24. 

The nominal GDP for 2024-25 is expected to reach Rs 324.11 lakh crore, reflecting a growth of 9.7%, up from Rs 295.36 lakh crore in the previous year.

The real Gross Value Added (GVA), which measures the value of goods and services produced in the economy, is estimated to grow by 6.4% in FY 2024-25, compared to 7.2% in FY 2023-24. The nominal GVA is expected to grow by 9.3%, reaching ₹292.64 lakh crore, up from ₹267.62 lakh crore in FY 2023-24.

Several sectors are expected to perform relatively well in FY 2024-25. Agriculture and allied sectors are projected to show a growth of 3.8%, a significant improvement from the 1.4% growth seen in FY 2023-24. The construction sector is also anticipated to witness strong growth of 8.6%, while the financial, real estate, and professional services sector is expected to grow by 7.3%.

Private Final Consumption Expenditure (PFCE), a key indicator of consumer spending, has seen a sharp rebound, with a growth rate of 7.3% in FY 2024-25 compared to 4.0% in FY 2023-24. On the other hand, Government Final Consumption Expenditure (GFCE) is expected to grow by 4.1%, up from 2.5% in the previous year.

These estimates are based on a wide range of economic indicators, including industrial production, financial performance of listed companies, agricultural crop estimates, and transport and logistics data. While these figures provide a snapshot of the economy’s performance, they are subject to revisions based on updated data and further analysis. The second advance estimates for FY 2024-25 will be released in February 2025.

Experts say that growth moderation in the first advance estimates highlights both the recovery and challenges India’s economy faces as it adjusts to global and domestic economic conditions.