The first advance estimates for the FY25 are out now and India’s GDP growth story seems to be a little sluggish in this report. The real GDP growth has been estimated to come down to 6.4%, which is a huge drop from the previous fiscal’s 8.2%. The sluggish growth can be alarming for the economy and the investors however, is this slowdown here to stay or it is just a temporary thing? Let’s find out in today’s blog.
GDP Growth Rates and Estimates
The real GDP has been estimated to be around ₹ 184.88 lakh crore in FY25, indicating a 6.4% rise from the previous fiscal real GDP of ₹ 173.82 lakh crore. On the other hand, the nominal GDP is indicating a rise of 9.7% which is from ₹ 295.36 lakh crore to ₹ 324.11 lakh crore during the same period. Post the pandemic year, this 2024-25 fiscal would see the lower GDP growth.
Now coming to the Gross Value Added or GVA, it has been estimated to be around ₹ 168.91 lakh crore in this fiscal, slightly above the previous fiscal’s provisional estimate of ₹ 158.74 lakh crore. The real GVA is thus also estimated to grow at a rate of 6.4% in this fiscal compared to the 7.2% growth registered in FY24. The Nominal GVA will be around ₹ 292.64 lakh crore, against ₹ 267.62 lakh crore of FY24, depicting a 9.3% rise.
Sectoral composition of Nominal GVA FY25
The sectoral composition of nominal GVA in FY25 is as follows –
| Sectors | Composition Ratio |
| Financial, Real Estate & Professional services | 23% |
| Agriculture, Livestock, Forestry & Fishing | 18% |
| Trade, Hotels, Transport, Communications & Services related to Broadcasting | 17% |
| Public Administration Defence, and other services | 15% |
| Manufacturing | 14% |
| Construction | 9% |
| Mining & Quarrying | 2% |
| Electricity, Gas, Water Supply, and other utility services | 2% |
Sectoral GVA Growth
The first advance estimates of FY25 of Nominal GDP are as follows –
| Sectors | GVA Growth (%) |
| Financial, Real Estate & Professional services | 7.3 |
| Agriculture, Livestock, Forestry & Fishing | 3.8 |
| Trade, Hotels, Transport, Communications & Services related to Broadcasting | 5.8 |
| Public Administration Defence, and other services | 9.1 |
| Manufacturing | 5.3 |
| Construction | 8.6 |
| Mining & Quarrying | 2.9 |
| Electricity, Gas, Water Supply, and other utility services | 6.8 |
Other Key Highlights
- Private Final Consumption Expenditure (PFCE) at constant prices has gone up at a growth rate of 7.3% in FY25 compared to 4% in FY24.
- Similarly, the Government Final Consumption Expenditure (GFCE) at constant prices has also gained momentum and gone up at a rate of 4.1% compared to 2.5% in the previous fiscal.
Wrapping up
As per the first advance estimates of FY25, India’s gdp growth seems to have been hit by geopolitical issues, as well as domestic events such as elections, and then corporate results were poor in the previous quarter. All these took a toll on the economy’s growth story, however, the outlook remains positive with a rebound seen in the capital expenditure both from the government and private sectors and the growing agricultural sectors.
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