Indian GDP Growth Lowest in 4 Years

2025-01-07 11:53 By Joana Taborda 1 min. read

India's economy is projected to grow by 6.4% in the 2024/25 fiscal year ending in March 2025, marking the slowest pace since the COVID-hit 2020/21 fiscal year and down from 8.2% growth in the previous year, according to preliminary estimates from the Ministry of Statistics.

The figure also falls short of the government's earlier forecast of 6.5%.

The slowdown is primarily attributed to weaker growth in gross fixed capital formation (6.4% vs 9%) and inventories (4.5% vs 5.9%), despite accelerated private (7.3% vs 4%) and government (4.1% vs 2.5%) spending.

Additionally, exports grew at a faster rate (5.9% vs 2.6%), while imports contracted (-1.3% vs 10.9%).

On the production side, manufacturing growth is expected to slow significantly (5.3% vs 9.9%), while growth in two other major GDP contributors - trade and hotels (5.8% vs 6.4%) and financial services and real estate (7.3% vs 8.4%) also moderated, offsetting a stronger performance in agriculture (3.8% vs 1.4%).



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