India's GDP growth is projected to slow down to 6.4% in 2024-25, a four-year low, compared to 8.2% in the previous year.
Economic Sectors:
Agriculture: Expected to grow at a faster pace (3.8%) compared to the previous year (1.4%).
Public Administration: Projected to grow at 9.1%, slightly higher than the previous year's 7.8%.
Manufacturing: Growth is expected to nearly halve from 9.9% to 5.3%.
Mining: Growth is estimated to slow down from 7.1% to 2.9%.
Gross Fixed Capital Formation (GFCF), an indicator of investment, is projected to grow at 6.4%, slower than the 9% growth in the previous year.
The second quarter of 2024-25 witnessed a significant economic slowdown.
Factors Contributing to Slowdown:
Lower fiscal stimulus.
High interest rates.
Stricter lending norms.
Decline in government capital expenditure.
Sluggish private sector investment.
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