Nominal GDP will grow at a pace of 9.7 percent in the current financial year
New Delhi| Even though the pace of growth of the country’s economy will slow down to a four-year low in the current financial year 2024-25 due to poor performance of manufacturing and service sectors, the growth rate of nominal GDP (at current prices) may increase to 9.7 per cent. In 2023-24, the economic growth rate at current prices was 9.6 per cent.
The size of GDP at current prices is expected to increase by 9.7 per cent from 295.36 lakh crore in 2023-24 to Rs 324.11 lakh crore in 2024-25, according to the first advance estimates for 2024-25 released by the National Statistical Office (NSO) on Tuesday The size of the economy in dollar value is $3.8 trillion in the current fiscal year. It has been estimated on the basis of Rs 85.7 per dollar. Gross value added (GVA) at current prices could rise by 9.3 per cent from 267.62 lakh crore to Rs 292.64 lakh crore in 2024-25.
Aditi Nair, chief economist at rating agency ICRA, said NSO’s estimates seem logical, but some sectors may perform better. CRISIL Chief Economist Dharamkirti Joshi said, the urban economy is currently facing the dual challenge of high inflation and slow credit growth. It is also difficult to compensate further for the decline in government expenditure in the second quarter. Foreign brokerage company HSBC said, the growth rate may be lower than the official estimate in the current financial year, i.e. 6.2%.
Private final consumption spending (PFCE) at constant price is projected to increase by 7.3 per cent during 2024-25, from four per cent in 2023-24. Government Final Consumption Expenditure (GFCE) at constant prices is projected to grow at a pace of 4.1 per cent in the current financial year compared to 2.5 per cent in the previous financial year. The growth rate of the manufacturing sector may decline to 5.3 percent in the current financial year. In 2023-24, it was 9.9 percent. The growth rate in the services sector, including trade, hotels, transport and communications, may decline to 5.8 per cent compared to 6.4 per cent in 2023-24. It has been claimed that the performance of the agriculture sector can bring relief to the economy. The growth rate of the agricultural sector may increase to 3.8 per cent in the current financial year. In 2023-24, the region had grown at a pace of 1.4 per cent.
