On January 7, 2025, the centre released estimates for India’s GDP (Gross Domestic Product) growth rate in the current fiscal year. According to this estimation, the country’s GDP is predicted to grow at 6.4% in the fiscal year 2024-25, marking a four-year low and a sharp decline from 8.2% in FY24. A recent report from the finance ministry suggested that monetary policy, macroprudential measures by the central bank, and structural factors could have contributed to this slowdown.
This projected GDP growth rate is even lower than RBI’s estimated growth rate, which was 6.6% for the current fiscal year ending in March. Also, the 6.4% GDP growth rate projection is the lowest since the COVID-19 pandemic.
Now, all eyes are set on the February 1 budget, and expect measures to revive demand and boost growth. The RBI is also expected to cut its rate in the February policy meeting.
The data released by the NSO (National Statistics Office) revealed that India’s real GVA (Gross Value Added) is likely to expand by 6.4% in FY25. This is lower than the 7.2% of FY24. On the other hand, nominal GVA is projected to grow at 9.3% in the current fiscal year, a bit higher than the 8.5% of FY24.
