India's Economic Slowdown: A Four-Year Low in Growth

India's economic growth rate is projected to fall to 6.4% in 2024-25, marking its lowest point in four years due to underperformance in manufacturing and services. These estimates influence the upcoming Union Budget, highlighting a slowing economy despite growth in the agricultural sector.

India's economic growth is anticipated to slow to a four-year low of 6.4% in the fiscal year 2024-25, primarily due to weaker results in the manufacturing and services sectors. This estimation was revealed by government data, suggesting the least growth since the COVID-19 pandemic affected the nation in 2020-21.

The latest projections from the National Statistics Office put the growth estimate below the Reserve Bank's December forecast of 6.6% and also slightly undercut the finance ministry's earlier projection of 6.5-7%. These figures are crucial as they shape the forthcoming Union Budget presentation by Finance Minister Nirmala Sitharaman.

While manufacturing output is expected to slow significantly from last year's 9.9% to 5.3%, the services sector is also set to decelerate, growing only 5.8%, down from 6.4% in the previous year. Conversely, the agricultural sector shows promise, with growth anticipated to improve to 3.8% from 1.4%.