India’s GDP Growth Slows to 6.5% in FY 2024–25 — Four-Year Low Despite Strong Q4 Performance 5i6qu
New Delhi, May 31, 2025: India’s economy expanded at 6.5% in the financial year 2024–25, marking its slowest growth rate in four years, according to official data released by the Ministry of Statistics. The decline comes despite a strong recovery in the final quarter, where GDP surged by 7.2%, helping offset weaker growth seen earlier in the year.
In comparison, the economy had posted a growth of 9.2% in FY 2023–24. The drop is largely attributed to a sluggish global environment, soft private investment, and sector-specific slowdowns, although India has retained its position as one of the world’s fastest-growing large economies.
Sector-Wise Growth Performance:
- Agriculture and allied activities grew by 4.6%, up from 2.7% in the previous year, contributing positively to rural demand.
- Manufacturing saw a significant slowdown, ing only 4.5% growth compared to a robust 12.3% a year earlier.
- The construction sector also cooled off, recording 9.4% growth, slightly below the previous year’s 10.4%.
- Public istration and defence services expanded by 8.9%, reflecting higher government expenditure.
- Financial services, real estate, and professional services grew by 7.2%.
- Trade, transport, hotels, and related services rose by 6.1%, indicating stable urban consumption.
- Electricity and utility services posted a 5.9% growth.
- Mining and quarrying recorded the lowest sectoral growth at 2.7%.
The nominal GDP for FY 2024–25 is estimated at ₹187.97 lakh crore, compared to ₹176.51 lakh crore in the previous fiscal year, showing steady expansion in overall economic output.
Economists view the slowdown as a temporary phase amid external challenges and expect a moderate revival in the coming quarters, ed by improving consumer sentiment, easing inflation, and anticipated policy continuity after the general elections.