Decoding India’s growth slowdown
The HinduThe first advance estimates of India’s Gross Domestic Product in 2024-25, released by the National Statistics Office this week, shows a decline in the real GDP growth rate to 6.4% from 8.2% registered in 2023-24. The annual growth rates of real gross fixed capital formation in public and private sectors During the 10 years of the United Progressive Alliance rule, between 2004-05 and 2013-14, the average annual growth of real GDP was at 6.8%, investment 10% and private consumption 6%. Between the onset of the present regime till the outbreak of the pandemic, that is, between 2014-15 and 2019-20, real GDP grew at an annual average rate of 6.8%, but real investment growth fell to 6.3% while private consumption growth increased to 6.8%. Post-pandemic there has been one percentage point increase in the annual average growth rate of real investment, and 0.8 percentage point decline in the annual average growth rate of private consumption.