India’s economy is projected to grow at 6.4% in the fiscal year 2024-25, a notable decline from the 8.2% growth recorded in the previous year, according to the National Statistical Office (NSO). The forecast, released on Tuesday in the first advance estimates of national accounts, is slightly lower than the Reserve Bank of India's (RBI) recent projection of 6.6% for the same period.

The NSO stated, "Real GDP is estimated to grow by 6.4% in FY2024-25, compared to the 8.2% growth rate in the Provisional Estimate (PE) for FY2023-24." The data highlights a moderation in economic expansion as the post-pandemic recovery stabilizes.

The expected deceleration comes amid global economic headwinds, including geopolitical tensions, fluctuating commodity prices, and tightening financial conditions. Domestically, rising inflationary pressures and a subdued export environment are also weighing on growth prospects.

Despite the slowdown, India remains one of the fastest-growing major economies globally, driven by strong domestic consumption, robust infrastructure investment, and resilient private sector performance. Sectors like manufacturing, construction, and services are expected to remain key contributors to the overall growth.

The NSO’s advance estimates serve as a critical input for the Union Budget, set to be presented next month. Policymakers will likely focus on balancing fiscal discipline with measures to stimulate growth, generate employment, and support vulnerable sectors of the economy.

Experts suggest that while a 6.4% growth rate reflects healthy expansion, challenges such as attracting foreign investment, addressing unemployment, and sustaining rural demand will require strategic policy interventions.

The government is also expected to prioritize long-term reforms and boost public spending in the upcoming fiscal year to maintain growth momentum amidst an uncertain global economic environment.

India’s economy is projected to grow at 6.4% in the fiscal year 2024-25, a notable decline from the 8.2% growth recorded in the previous year, according to the National Statistical Office (NSO). The forecast, released on Tuesday in the first advance estimates of national accounts, is slightly lower than the Reserve Bank of India's (RBI) recent projection of 6.6% for the same period.

The NSO stated, "Real GDP is estimated to grow by 6.4% in FY2024-25, compared to the 8.2% growth rate in the Provisional Estimate (PE) for FY2023-24." The data highlights a moderation in economic expansion as the post-pandemic recovery stabilizes.

The expected deceleration comes amid global economic headwinds, including geopolitical tensions, fluctuating commodity prices, and tightening financial conditions. Domestically, rising inflationary pressures and a subdued export environment are also weighing on growth prospects.

Despite the slowdown, India remains one of the fastest-growing major economies globally, driven by strong domestic consumption, robust infrastructure investment, and resilient private sector performance. Sectors like manufacturing, construction, and services are expected to remain key contributors to the overall growth.

The NSO’s advance estimates serve as a critical input for the Union Budget, set to be presented next month. Policymakers will likely focus on balancing fiscal discipline with measures to stimulate growth, generate employment, and support vulnerable sectors of the economy.

Experts suggest that while a 6.4% growth rate reflects healthy expansion, challenges such as attracting foreign investment, addressing unemployment, and sustaining rural demand will require strategic policy interventions.

The government is also expected to prioritize long-term reforms and boost public spending in the upcoming fiscal year to maintain growth momentum amidst an uncertain global economic environment.