India’s growth rate GDP may remain sluggish during the financial year 2024-25. The government’s advance estimate has projected India’s gross domestic product (GDP) to grow at the rate of 6.4 percent during the current financial year.
The Awadh Times, New Delhi: This is the lowest level in four years. The economy grew at the rate of 8.2 percent in the last financial year. Let us know why the economy is slowing down.
New Delhi. India’s economic growth is slowing down. According to the advance estimate of the government, India’s gross domestic product (GDP) may grow at the rate of 6.4 percent in the financial year 2024-25.
This is the lowest level in four years. This is also a sharp decline in growth compared to the previous financial year, when the Indian economy grew at the rate of 8.2 percent.
Who has released the GDP growth estimate
The latest estimate of GDP growth has been released by the National Statistical Office (NSO). This is the first advance estimate of national income for the financial year 2024-25. According to this data, real gross value added (GVA) is expected to grow at the rate of 6.4 percent in FY 25.
This is less than 7.2 percent in FY 24. At the same time, nominal GVA is estimated to grow at the rate of 9.3 percent in FY 25. This is slightly higher than the growth of 8.5 percent in the last financial year.
Reason for releasing GDP growth estimate
Advance GDP estimates provide important data for preparing the budget. Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025. The data obtained from the GDP estimates will help her and her ministry in making policies.
Such as which sector is slowing down, who needs more help, etc. The Finance Minister is also meeting representatives from different sectors, so that she can present a budget that addresses their problems.
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Why is India’s GDP growth slowing down?
India’s economy is consumption-based. There has been a decrease in consumption during the last few months, the effect of which is being seen on economic growth.
Inflation has also increased a lot in the last few months. But, people’s income is not increasing accordingly, due to which the sale of things is not increasing.
Inventory has also increased significantly with companies from automobiles to many other sectors. This means that the demand in the market has reduced significantly.
Trade is being affected by global uncertainty. The attack by Houthi rebels in the Red Sea has had a very bad effect on India’s imports and exports.
The quarterly results of Indian companies are continuously coming weak. Due to this, foreign investors are withdrawing money from the Indian market. This is also a big factor.
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