The slower expansion of Asia’s third largest economy comes in the wake of higher interest rates amid elevated inflation, especially of food commodities.

HSBC forecasts India's real GDP growth to be 6.2% in FY25, lower than the official estimate, and 6.5% in FY26. The brokerage expects inflation to fall to 4.9% in FY25.

The Indian economy, in real terms, is expected to grow by 6.4 per cent in 2024-25 as compared to the 8.2 per cent growth in 2023-24. It is 20 basis points less than RBI estimates. The Ministry of Statistics and Programme Implementation released the First Advance Estimates of Annual

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.

The Indian economy is projected to grow at 6.4% in 2024-25, down from 8.2% in the previous fiscal year, according to the National Statistical Office (NSO), which released its first advance estimates for national accounts on Tuesday.