In FY 25 India Braces For Slowest Economic Growth In Four Years

ENA Economy 2025-01-08 15:07:50 New Delhi, Jan 8 (KNN) India's economy is forecast to grow at 6.4 percent in fiscal year 2024-25, its slowest pace in four years, according to the first advance estimates released by the National Statistics Office on Tuesday. This projection falls short of both the Reserve Bank of India's estimate of 6.6 percent and the government's target range of 6.5-7 percent outlined in the Economic Survey 2023-24, primarily attributed to subdued industrial output and investment activity. The advance estimates, which are based on economic data from the first seven to eight months of the current fiscal year, serve as a crucial input for finance ministry officials preparing the Union Budget, scheduled for presentation in Parliament on February 1. These preliminary figures are derived through extrapolation of available data to project full-year economic performance. Despite expectations of improved economic momentum in the latter half of the fiscal year, with calculations suggesting a growth rate of 6.7 percent for October-March (H2), the overall annual forecast remains tempered by slower growth in the first half. The economy registered a growth rate of 6.0 percent during April-September (H1), indicating a modest recovery trajectory. The growth trajectory has shown recent signs of strain, as evidenced by the previous GDP data release on November 29, 2024, which revealed growth had decelerated to a seven-quarter low of 5.4 percent in the July-September quarter. This slowdown was largely attributed to weak performance in the manufacturing sector and decreased activity in mining and quarrying operations, marking a significant drop from the 6.7 percent growth recorded in the April-June quarter. (KNN Bureau) 40562 https://knnindia.co.in/news/newsdetails/economy/in-fy-25-india-braces-for-slowest-economic-growth-in-four-years 2025-01-08 15:07:50 knnindia.co.in In FY 25 India Braces For Slowest Economic Growth In Four Years