The latest official data released on Friday has revealed a slump in India’s economic growth, which came down to 7.4 per cent in the March quarter of FY2024-25 – lower than the 8.4 per cent expansion in the year-ago quarter.
Although the real GDP expanded 6.5 per cent in FY 2024-25 – slightly above market expectations of 6.3 per cent and in tandem with the Finance Ministry’s estimate of 6.5 per cent – the National Statistics Office (NSO) said in a statement that it was lower than a 9.2 per cent growth in 2023-24 that had put it on the fastest-growing economy path.
Official data recorded a growth of 8.7 per cent and 7.2 per cent, respectively, in 2021-22 and 2022-23.
The Finance Ministry’s monthly report in March 2025 said that the performance of the economy in the past quarters had been driven by strong agricultural and service sector performance on the supply side. It also credited a steady increase in consumption and core merchandise and services exports on the demand side for the estimate.
The sectors expected to grow in FY 2024-25 in the report included ‘Construction’ (pegged at a growth rate of 9.4 per cent), ‘Public Administration, Defence and Other Services’ sector (at 8.9 per cent) and ‘Financial, Real Estate and Professional Services’ sector (at 7.2 per cent).
During Q4 of FY 2024-25, ‘Construction’ sector grew at 10.8 per cent, ‘Public Administration, Defence and Other Services’ at 8.7 per cent, and ‘Financial, Real Estate and Professional Services’ sector at 7.8 per cent.
Private Final Consumption Expenditure (PFCE) has reported 7.2 per cent growth rate during FY24-25 as compared with 5.6 per cent in the previous financial year.
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