India forecast annual growth of 6.4% in the year ending in March, the slowest in four years and below the lower end of government's initial projection, dragged by a weaker manufacturing sector and slower corporate investments.

Real GVA for FY 2024-25 is estimated to be INR 168.91 lakh crore, compared to INR 158.74 lakh crore in FY 2023-24, which implies a growth rate of 6.4 per cent. This is especially lower than the 7.2 percent real GVA growth achieved in the previous financial year.

India's GDP is projected to grow 6.4% in 2024-25, down from 8.2% in 2023-24, due to reduced investment, impacting fiscal and monetary policies ahead.

The Indian economy, Asia's third largest after China and Japan, grew 8.2% in 2023/24 and 7% in 2022/23. In nominal terms, which include inflation, the economy is expected to grow 9.7%, compared with the 10.5% estimate in the annual federal budget announced in February 2024.