GDP progress slows to six.5% in 2024-25, slowest for the reason that pandemic

The manufacturing sector’s progress stood at 4.8% in This fall of FY25, the second quickest quarterly progress within the yr, on a excessive base of 11.3% in This fall of the earlier yr. Representational file picture.
| Photograph Credit score: B. Velankanni Raj

Whereas a big uptick in financial exercise within the fourth quarter of economic yr 2024-25 pushed GDP progress for the complete yr to six.5%, as per the provisional estimates for 2024-25 launched by the federal government on Friday (Might 30, 2025), that is the slowest for the reason that pandemic yr 2020-21.

As per information launched by the Ministry of Statistics and Programme Implementation, actual GDP progress in This fall of 2024-25 accelerated to 7.4%, the quickest quarterly progress within the yr. Quarterly GDP progress stood at 6.4% in Q3. However, progress in This fall of 2024-25 was slower than the 8.4% seen within the fourth quarter of the earlier monetary yr.

The agriculture sector continued its sturdy efficiency in This fall, resulting in a comparatively sturdy exhibiting for the complete yr. The ‘Agriculture, Livestock, Forestry & Fishing’ sector grew 5.4% in This fall of the yr, up from 0.9% in This fall of 2023-24. This helped propel the complete yr’s progress for the sector to 4.6% within the full yr 2024-25, up from 2.7% in 2023-24.

The manufacturing sector’s progress stood at 4.8% in This fall of FY25, the second quickest quarterly progress within the yr, on a excessive base of 11.3% in This fall of the earlier yr. The sector grew 4.5% within the full monetary yr 2024-25, down from 12.3% in 2023-24.

The development sector returned to double-digit progress of 10.8% within the fourth quarter, the quickest within the yr, and sooner than the 8.7% seen in This fall of 2023-24. The sector’s full-year progress stood at 9.4% in 2024-25, down from 10.4% in 2023-24.

Development within the tertiary sector — a composite of all of the providers sectors measured — stood at 7.3% in This fall, in keeping with the expansion in Q2 (7.2%) and Q3 (7.4%). Development in This fall, nevertheless, was slower than the 7.8% seen within the fourth quarter of 2023-24. Within the full yr 2024-25, the tertiary sector grew at 7.2%, decrease than the 9% within the earlier yr.

The information launched on Friday additionally confirmed that progress in family consumption – as measured by the Personal Last Consumption Expenditure (PFCE) determine — quickened to 7.2% in 2024-25 from 5.6% within the earlier yr.

Gross Mounted Capital Formation, a measure of asset creation by the private and non-private sector, noticed progress slowing to 7.1% in 2024-25 from 8.8% in 2023-24. That is regardless of progress on this spending quickening to a six-quarter excessive of 9.4% in This fall of 2024-25.