The government released its first advance estimates on Tuesday, predicting that India's GDP will grow by 6.4 per cent in the fiscal year 2024–2025. According to the National Statistics Office's (NSO) preliminary data, the growth rate is probably going to fall below 7 per cent for the first time in four years.
'Compared to the Provisional Estimate of GDP for the year 2023-24 of Rs 173.82 lakh crore, the Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 184.88 lakh crore in the financial year 2024-25,' the Ministry of Statistics & Programme Implementation stated in a release.
Nominal GDP
In FY 2024–2025, nominal GDP (which accounts for inflation) is expected to increase by 9.7 per cent to Rs 324.11 lakh crore, which is slightly more than the 9.6 per cent growth observed the year before.
FY 2024–2025 is expected to see a 6.4 per cent growth in real gross value added (GVA), down from a 7.2 per cent growth rate the year before.
Private consumption is major contributor
A key contributor to economic expansion, private consumption grew at a rate of 7.3 per cent in FY 2024–2025 compared to 4.0 per cent the year before. With final consumption expenditure predicted to increase by 4.1 per cent as opposed to 2.5 per cent in FY 2023–2024, government spending is also expected to rebound.
how advance benmchmark is calculated?
The benchmark-indicator approach is used in the advance estimates, which use information from government accounts, trade, agriculture, and industrial production. The estimates were also influenced by factors such as passenger and cargo traffic, listed companies' financial performance, and GST collections.
The October-December quarter GDP figures and the second advance estimates will be made public on February 28, 2025.
