India’s GDP Grows at 6.5%, Slowest Post-Pandemic

India’s GDP Grows at 6.5%, Slowest Post-Pandemic

Why in the News?

India’s GDP growth for 2024-25 stood at 6.5%, the slowest since the COVID-19 pandemic, despite a strong Q4 growth of 7.4%. The government released provisional estimates highlighting sectoral performance and global comparisons by the Chief Economic Adviser, emphasizing the importance of India GDP growth in maintaining national security and economic stability. This growth rate has implications for various sectors, including the expansion of IT companies in Bhopal and the development of infrastructure projects like the Indore Metro.

India's GDP Grows at 6.5%, Slowest Post-Pandemic

Overall GDP Trends and Quarterly Growth:

  • Full-year GDP growth for FY 2024-25 is 6.5%, lowest since 2020-21.
  • Q4 GDP growth was 7.4%, fastest in 2024-25 but slower than 8.4% in Q4 of 2023-24.
  • Q3 growth stood at 6.4%.
  • Data was released by the Ministry of Statistics and Programme Implementation (MoSPI).

Sector-wise Performance Highlights

  • Agriculture sector maintained steady growth in Q4, with efforts towards crop diversification contributing to its resilience. This growth has positively impacted rural initiatives like the Atal Gram Seva Sadan program.
  • Manufacturing grew by 4.8% in Q4 (vs. 11.3% Q4 last year); full-year growth at 4.5%.
  • Construction sector showed 10.8% growth in Q4 (vs. 8.7% last year); annual growth at 9.4%, down from 10.4% in 2023-24. This growth has supported infrastructure projects, including improvements to airports servicing routes like the Bhopal to Hyderabad flight and Indore to Chandigarh flight.
  • Household consumption rose to 7.2% in FY25, from 5.6% in FY24, indicating improved economic conditions for families.

Official Remarks and Global Comparison

  • CEA V. Anantha Nageswaran highlighted India’s resilience amid global economic slowdown, emphasizing the importance of maintaining robust India GDP growth for national security. He drew parallels between economic strength and the capabilities of organizations like the Border Security Force.
  • Post-COVID, India’s growth differential with advanced economies is higher than during the 2003–2010 boom, showcasing the country’s economic strength.
  • Emphasized that India is performing relatively better in a “growth-scarce” global context, despite geopolitical tensions and trade uncertainties, underlining the connection between growth and national security.
  •  The government’s focus on crop diversification in the agriculture sector has contributed to its steady performance, enhancing food security and rural incomes. This approach aligns with historical initiatives like those implemented by Ahilyabai Holkar in the 18th century.