India’s real GDP expected to grow at 6.5% in FY25
28 Feb 2025
India’s real Gross Domestic Product (GDP) is estimated to grow at 6.5 per cent, as per the second revised estimates of national income, released on Friday.
Real GDP, or GDP at constant prices, is estimated to reach Rs187.95 lakh crore in the 2024-25 financial year, against the first revised estimate of GDP of Rs176.51 lakh crore for the 2023-24 financial year.
Nominal GDP or GDP at current prices is estimated to reach Rs331.03 lakh crore in the 2024-25 fiscal, against Rs301.23 lakh crore in 2023-24, showing a growth of 9.9 per cent.
Nominal GDP is expected to grow at 9.9 per cent in FY 2024-25, which is also higher compared to the first revised estimate of 9.2 per cent for the fiscal.
Real Gross Value Added (GVA) is estimated to grow at 6.4 per cent to Rs171.80 lakh crore in the year 2024-25, against the 8.6 per cent growth to Rs161.51 lakh crore for the year 2023-24.
Nominal GVA is estimated to reach Rs300.15 lakh crore in FY2024-25, against Rs274.13 lakh crore in 2023-24, showing a growth of 9.5 per cent
The FY25 growth rate is higher compared to the 6.2 per cent growth in GDP for fiscal third quarter estimated by the National Statistics Office (NSO).
NSO has revised the final growth rate of real GDP for Q2 of financial year 2024-25 upward to 5.6 per cent.
India’s real GDP had grown by 9.2 per cent in the financial year 2023-24, which is the highest in the previous 12 years except for the financial year 2021-22 (the post-covid year) – which has been exceptional due to double-digit growth in manufacturing (12.3 per cent), construction (10.4 per cent) and financial, real estate and professional services (10.3 per cent).
Real GDP in fiscal 2022-23 grew by 7.6 per cent as per final revised estimates. This has been due mainly to double-digit growth in sectors like trade, hotels, transport, communication and services related to broadcasting (12.3 per cent), financial, real estate and professional services (10.8 per cent) and electricity, gas, water supply and other utility services (10.8 per cent).
GDP growth in FY25 will also be boosted by an expansion in Private Final Consumption Expenditure (PFCE) to 7.6 per cent compared to the 5.6 per cent growth during 2023-24.
