four year low

New Delhi: Due to poor performance in manufacturing and service sectors, the country’s economic growth rate is likely to fall to a four-year low of 6.4 percent in the current financial year 2024-25. This estimate has been expressed in the government data released on Tuesday.

6.4 percent GDP is the lowest after the financial year 2020-21. It is noteworthy that in the year 2020-21, due to Covid, GDP was minus 5.8 percent. GDP will be 9.7 percent in 2021-22, 7 percent in 2022-23 and 8.2 percent in 2023-24.

NSO’s growth estimate of 6.4 percent for fiscal year 2024-25 is lower than the Reserve Bank of India’s estimate. RBI had said in its estimate released in December 2024 that GDP will be 6.6 percent in the current financial year.

Apart from this, this estimate of NSO is also less than the estimate of the Finance Ministry. The Finance Ministry had estimated the GDP to be 6.5 percent in the current financial year. This advance estimate is used to prepare the Budget to be presented in the Lok Sabha by Finance Minister Nirmala Sitharaman on February 1. According to NSO estimates, the growth rate of the manufacturing sector will be 5.3 percent in the financial year 2024-25. Which was 9.9 percent in the last financial year. The growth rate of the service sector is estimated to be 5.8 percent in 2024-25. Which was 6.4 percent in the last financial year.

It is noteworthy that the service sector includes trade, hotels, transportation and communications. The growth rate of agriculture sector is estimated to be 3.8 percent in 2024-25. Which was 1.4 percent in the last financial year. According to NSO estimates, the size of the Indian economy is estimated to be $3.8 trillion in 2024-2025.