India's Real GDP Growth Forecasted at 6.4%

Key Points

• 1The First Advance Estimates show a real GDP growth of 6.4% and a nominal GDP growth of 9.7% for 2024-25.
• 2The Reserve Bank of India had estimated 6.6% real GDP growth in December 2024.
• 3The 2024-25 Union Budget projected 10.5% nominal GDP growth in July 2024.
• 4The manufacturing sector suffered a sharp fall in sectoral growth from 9.9% in 2023-24 to 5.3% in 2024-25.
• 5The average Incremental Capital Output Ratio (ICOR) is assumed to be 5.1 in 2025-26.
• 6The Government of India's capital expenditure has remained limited to ₹5.14 lakh crore after the first eight months.
• 7Over the next five years, the best that India may hope for is a steady real GDP growth rate of 6.5%.