India's First Advance Estimates Show GDP Growth Slowing to 6.4% in FY25; Manufacturing Hit Hardest

Jan 7, 2025, 11:03 AM

India's economy is projected to grow at 6.4% in the fiscal year 2024-25, a sharp slowdown from the 8.2% expansion recorded in the previous year, according to the first advance estimates released by the National Statistics Office on Tuesday. The estimated growth rate marks the slowest pace in four years and the weakest since the pandemic, reflecting a moderation in key sectors including manufacturing and construction. The manufacturing sector is expected to be the hardest hit, while the agriculture sector is projected to grow at 3.8% during the year. The revised projections suggest that consumers are cutting back on spending, dampening economic activity.