India’s Gross Domestic Product (GDP) is projected to grow by 6.4% in the fiscal year 2024-25, a significant drop from the robust 8.2% growth recorded in FY24, according to government data released on Tuesday.
The advance GDP estimate plays a crucial role in framing the Union Budget and indicates a slowdown in economic activity. This projection follows a sharp dip in growth during the July-September quarter of FY24, which stood at 5.4%, surprising analysts and policymakers alike.
The unexpected slowdown in the second quarter prompted the Reserve Bank of India (RBI) to revise its growth forecast for FY24. The RBI lowered its estimate to 6.6%, down from the earlier projection of 7.2%.
These figures highlight a challenging economic environment as the government prepares its fiscal roadmap for the upcoming year.
