Growth Drops - Business Outrank

India achieved 6.5% economic growth in 2024-25 after its previous year's 9.2% expansion. The National Statistics Office (NSO) revealed official data which demonstrated a 7.4% growth during January–March 2025 compared to 8.4% in the same period of the previous year. The economic growth rate reduction indicates that both international uncertainties and domestic challenges have reduced the country's momentum. The NSO’s second advance estimate had previously forecasted the 6.5% growth rate which indicates that India’s economic growth has slowed down after its strong post-pandemic expansion. The economic growth rate of India stands as one of the highest among major economies even though it shows signs of decline. The first quarter of 2025 revealed China reached a 5.4% growth rate yet India maintained its position as the fastest-growing regional economy. Economists point to three key elements which explain the economic slowdown because private consumption has decreased and worldwide economic conditions have worsened and different sectors have shown different performance levels. The manufacturing sector along with services sectors remain stable yet agriculture and exports sectors face ongoing difficulties. Stakeholders will track fiscal policies to support economic growth and investor confidence because general elections and possible policy transformations are approaching.

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