Overview

• 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.