Trend growth returns, but reforms key to sustain India's 6.5% GDP pace

The National Statistics Office (NSO) estimates India’s gross domestic product (GDP) growth for 2024-25 at 6.5 per cent, slightly above its initial estimate of 6.4 per cent but below that of forecasters and the Reserve Bank of India (RBI).

 

The NSO’s estimate marks a return to the pre-pandemic decadal trend growth rate, following an above-trend average growth of 8.8 per cent between financial years (FY) 2021-22 and 2023-24, driven by higher interest rates and lower fiscal stimulus. After the initial surge, the investment-to-GDP ratio is also stabilising.

 

India’s recovery from the Covid-19 pandemic has been marked by sharp upward revisions