GDP growth could drop to a 4-year low of 6.4%

Chandigarh is facing a dip in its economic growth, with projections indicating that the rate will fall to a four-year low of 6.4 percent for the fiscal year 2024-25. This decline is largely attributed to a slowdown in both the manufacturing and services sectors, as highlighted by recent government statistics. In comparison, the growth rate for the current fiscal year is significantly lower than the 8.2 percent recorded in 2023-24. The Ministry of Statistics and Programme Implementation noted that while the real GDP is expected to grow by 6.4 percent in FY 2024-25, the nominal GDP will see a slight increase to 9.7 percent. The anticipated real GDP for 2024-25 is projected to reach Rs 184.88 lakh crore, up from Rs 173.82 lakh crore in the previous year. This 6.4 percent growth rate marks the lowest since the pandemic year of 2020-21, which saw a negative growth of 5.8 percent, followed by a recovery with growth rates of 9.7 percent in 2021-22, 7 percent in 2022-23, and 8.2 percent in 2023-24. The manufacturing sector is expected to slow down significantly, with growth projected at just 5.3 percent, a drop from the impressive 9.9 percent seen last year. The services sector, which includes areas like trade, hotels, transport, and communications, is also set to experience a decline, with an estimated growth of 5.8 percent compared to 6.4 percent in the previous fiscal year. On a brighter note, the agriculture and allied sectors are showing promising signs, with real GVA growth expected to rise to 3.8 percent, a substantial increase from last year’s 1.4 percent. Additionally, both the construction sector and the financial, real estate, and professional services sectors are anticipated to perform well, with the construction sector’s real GVA projected to grow by 8.6 percent.