India's GDP Growth Slows to 6.4%, Lowest in Four Years

Economic deceleration driven by reduced investment and manufacturing slowdown, raising concerns ahead of Union Budget and monetary policy decisions.

India's GDP growth for FY25 is projected at 6.4%, down from 8.2% in FY24, marking the slowest growth since the pandemic-induced contraction in FY21.
The manufacturing sector is expected to grow by just 5.3%, a sharp decline from 9.9% in FY24, highlighting challenges for initiatives like Make in India and PLI schemes.
The services sector, contributing over half of GDP, is also slowing, with sub-segments like trade and transport seeing significant dips in growth rates.
Investment growth has weakened, with Gross Fixed Capital Formation expected to grow at 6.4%, down from 9% in FY24, reflecting subdued business confidence.
Agriculture is a rare bright spot, with projected growth of 3.8% in FY25, but it is insufficient to offset broader economic challenges.