- India’s GDP is projected to grow by 6.4% in FY 2024-25, slightly lower than earlier expectations.
- Agricultural, construction, and services sectors are expected to lead the growth.
- The first estimates are subject to revisions and will influence the upcoming federal budget.
India’s economy is anticipated to grow by 6.4% in the fiscal year 2024-25, according to the first advance estimates released by the National Statistics Office.
This marks a slight decline from the earlier government projection of 6.5%-7%. Despite a weaker first half of the fiscal year, the government expects a recovery in the second half, driven by growth in agriculture and industrial sectors, along with continued rural demand.
India’s Economy to Grow 6.4% in FY 2024-25: Key Sectors Show Promise
The agricultural sector is projected to see a significant improvement, with a growth rate of 3.8%, up from 1.4% in the previous year. Similarly, the construction sector is expected to expand by 8.6%, bolstered by infrastructure development and rising housing demand. The financial, real estate, and professional services sectors are also poised for growth, estimated at 7.3%, driven by both domestic and global demand.
The agricultural sector stands out with an expected growth rate of 3.8%, a significant increase from 1.4% in FY 2023-24. This improvement is likely due to favorable monsoon conditions and higher crop yields, which could be further supported by policy measures aimed at enhancing rural productivity and incomes.
The construction sector is another area of expected growth, with a forecast of 8.6%. This growth is linked to ongoing infrastructure development, increasing housing demand, and urbanization trends across the country. The financial, real estate, and professional services sectors are also expected to perform well, with a projected growth of 7.3%, driven by robust domestic and international demand.
In terms of the broader economic outlook, the first advance estimates are subject to revisions as more data becomes available. These estimates will be used as a base for the Indian government’s upcoming federal budget, which will be presented on February 1.
While the 6.4% growth forecast for FY 2024-25 is slightly lower than earlier expectations, India’s economic resilience, particularly in agriculture, construction, and services, remains promising for the coming year.
“The agriculture and allied sector has shown a significant improvement, with Real GVA growth estimated at 3.8 per cent in FY25.”
