India's Economic Growth: Slowing Momentum Amid Ambitious Goals
India's economic growth decelerated to 7.4% in early 2025, bringing the annual rate to a four-year low of 6.5% due to subdued manufacturing. Despite this, India's economy reaches USD 3.9 trillion, setting sights on the USD 5 trillion target. Services and agriculture saw better growth compared to manufacturing.
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According to official data released Friday, India's economic growth slowed to 7.4% in the January-March quarter, significantly affecting the annual rate for 2024-25, which hit a four-year low of 6.5%. The manufacturing sector's underperformance was a significant contributing factor to this decline.
Despite the slowdown, the Indian economy's total size rose to Rs 330.68 lakh crore, approximately USD 3.9 trillion, keeping the goal of reaching USD 5 trillion in sight for the coming years. The past fiscal year saw a robust 9.2% growth, offering a point of contrast.
China, meanwhile, recorded a 5.4% growth rate in the first quarter of 2025. This global context sets a stage for India as it continues to grapple with sector-specific challenges, with manufacturing faltering at a lower 4.5% annual growth in contrast to stronger performances in agriculture and construction.
(With inputs from agencies.)
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