India’s economy grew by 6.5% in the financial year 2024-25. This data comes from a provisional estimate by the Union government.

The Slowest Growth Since the Pandemic

This growth rate is the slowest we’ve seen since the Covid-19 pandemic hit in 2020-21. For comparison, the country’s GDP grew by 9.2% in 2023-24.

Growth Over the Quarters

In the last quarter of 2024-25, the GDP grew by 7.4%. This is lower than the 8.4% growth seen in the same period the previous year.

How Different Sectors Performed

India’s primary sector, which includes agriculture, did well. It grew by 4.4% in 2024-25. This is better than the 2.7% growth in the previous year.

Spending by People

People spent more in 2024-25. The private final consumption expenditure rose by 7.2%. This is up from 5.6% in the previous year.

What’s Next for Economic Data

We expect to see the economic growth data for the first quarter of 2025-26 in August.

Looking Back at Quarterly Growth

India’s GDP grew by 6.2% in the third quarter of 2024-25. This was a recovery from a low of 5.4% in the second quarter. The services sector did well, and the government spent more. In the first quarter, the GDP grew by 6.7%.

The Reserve Bank of India’s Plan

The Reserve Bank of India’s Monetary Policy Committee will meet from June 4 to June 6. They plan to cut the repo rate for the third time to help the economy grow.

Key Takeaways

• India’s GDP grew by 6.5% in 2024-25.
• This is the slowest growth since the pandemic year of 2020-21.
• The primary sector grew by 4.4% in 2024-25.
• People spent more, with a 7.2% rise in private final consumption expenditure.
• The RBI plans to cut the repo rate to boost growth.