India’s economic growth is expected to fall to nearly four-year low of 6.4 per cent in financial year 2024-25, according to the economy’s advance estimates.
The advance estimates released on Tuesday (January 7) showed that while services activity climbed to a four-month high in December, manufacturing fell to a 12-month low. The collective result is that the economy is expected to grow under 7 per cent this year for the first time in four years.
Similarly, while UPI transactions remained even, the GST growth declined to lowest in three months, according to advances estimates carried by Moneycontrol.
As for the official estimates for annual growth, the Reserve Bank of India (RBI) expects the economy to grow at 6.6 per cent and the government at 6.5-6.7 per cent.
The poor economic growth estimate follows poor quarterly growth results. In the July-September quarter, the growth fell to a nearly 5.4 per cent from 6.7 per cent in the previous April-June quarter.
The 6.4 per cent growth estimate is a sharp fall from 8.2 per cent in the previous financial year.
Manufacturing is projected to see the sharpest decline from 9.9 per cent to 5.3 per cent. Private consumption is projected to rise by 7.3 per cent from 4 per cent last year whereas investment growth in gross fixed capital formation is projected to fall to 6.4 per cent from 9 per cent.
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India’s GDP growth may slow down to 4-year low at 6.4%, govt releases first advance estimates
