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Time of India
a day ago
- Business
- Time of India
India's FY25 economic growth hits four-year low of 6.5%, Q4 GDP beats estimates
India's economic growth in FY25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24. However, Q4 GDP growth beat estimates after accelerating to 7.4 per cent but it couldn't save the economy from posting its slowest growth since Covid-era. Nonetheless, New Delhi's key officials have backed India's growth potential and vouched that the country will retain its title as the fastest-growing major economy in the world. The full-year growth remained within official projections, as private investment remained subdued amid global uncertainties. In the quarter ending March 31, 2025, India's growth stood was fastest in the four quarters, on the back of robust industrial activity and sustained global trade tensions grew larger by day. The third quarter had seen growth rise to 6.2 per cent, revised upward from an earlier estimate of 5.6 per cent, showing resilience amid global headwinds. The fourth quarter was marred by global trade disruptions led by Trump's tariffs and escalation of the Russia-Ukraine war. However, the Indian economy powered through the storm on the back of pick up rural demand and healthy government spending. Moreover, the latest growth figures continue to keep New Delhi in the race of fastest economies in the world. The International Monetary Fund (IMF) also expects India's economic size to surpass Japan's by the end of the year, reaching $4.18 trillion. A notable divergence between GDP and gross value added (GVA) was expected with the latter stripping out taxes and subsidies for a clearer picture of underlying economic activity. The GVA stood at 6.4 per cent. JP Morgan, for instance, estimated March quarter GDP growth at 7.5 per cent , but GVA growth at a more modest 6.7 per cent . Some analysts said that the higher-than-expected GDP print might be a reflection of a fall in government subsidies, which could inflate the headline number without reflecting equivalent real economic momentum. Despite the external challenges, the Indian economy remains relatively healthy due to its limited reliance on global goods trade, recent tax cuts, controlled inflation and a potentially softer interest rate environment. 'While external uncertainties—such as supply chain disruptions and energy market volatility—pose challenges, India continues to benefit from strong service sector performance, a stable banking system, and improving manufacturing output under schemes like PLI,' said Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuations and Ratings Ltd. In February 2025, the RBI had, for the first time in five years, cut the repo rate by 25 bps, a move expected to aid India's growth blitz. Retail inflation dropped to a near six-year low of 3.16 per cent in April, and a favourable monsoon forecast is expected to help stabilize food prices—factors that could allow the Reserve Bank of India (RBI) to consider a rate cut in June. Looking ahead, the RBI has projected 6.5 per cent growth for the fiscal year beginning April 1, 2025. 'On the inflation front, CPI is expected to moderate from 4.9 per cent in FY25 to 4.3 per cent in FY26, aided by easing food prices, prudent monetary policy, and a normal monsoon forecast. However, inflationary risks persist because of global commodity prices and any escalation in geopolitical tensions,' said Sharma.
Economic Times
a day ago
- Business
- Economic Times
India sustains growth momentum as fastest growing economy again: Finance Minister Sitharaman on FY25 GDP numbers
Despite a stronger-than-expected 7.4% growth in Q4, India's economic expansion slowed to a four-year low of 6.5% in FY25, a significant drop from the previous year's 9.2%. Finance Minister Nirmala Sitharaman highlighted that India has maintained its position as the fastest-growing economy for the fourth consecutive year, with robust manufacturing activity in the fourth quarter. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Finance Minister Nirmala Sitharaman on Friday while commenting on FY25 GDP said that India has sustained its growth momentum as fastest growing economy for fourth year in a economic growth in Q4 beat estimates after accelerating to 7.4% but it couldn't save the economy from posting its slowest growth since Covid-era in FY25. The economy in 2024-25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24."India sustains growth momentum as fastest growing economy for fourth year in a row," said Finance Minister Nirmala Sitharaman. The Union Minister added that the country's manufacturing activity has been good during fourth economic expansion was recorded at 7.4 per cent during January-March 2025, while it was 6.4 per cent in October-December 2024, 5.6 per cent in July-September 2024, and 6.5 per cent in the April-June quarter of the last financial year, according to economic estimates released by the National Statistics Office (NSO).The GDP had expanded by 8.4 per cent in the January-March quarter of NSO, in its second advance estimate released in February, had projected the GDP growth for 2024-25 at 6.5 per cent."Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 187.97 lakh crore in FY2024-25, against the First Revised Estimates (FRE) of GDP for the FY 2023-24 of Rs 176.51 lakh crore, registering a growth rate of 6.5 per cent.
Time of India
a day ago
- Business
- Time of India
India sustains growth momentum as fastest growing economy again: Finance Minister Sitharaman on Q4 GDP
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Finance Minister Nirmala Sitharaman on Friday while commenting on Q4 GDP growth said that India has sustained its growth momentum as fastest growing economy for fourth year in a economic growth in Q4 beat estimates after accelerating to 7.4% but it couldn't save the economy from posting its slowest growth since Covid-era in FY25. The economy in 2024-25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24."India sustains growth momentum as fastest growing economy for fourth year in a row," said Finance Minister Nirmala Sitharaman. The Union Minister added that the country's manufacturing activity has been good during fourth quarter.
Time of India
2 days ago
- Business
- Time of India
India's FY25 economic growth hits four-year low of 6.5%, Q4 GDP beats estimates
India's economic growth in FY25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24. However, Q4 GDP growth beat estimates after accelerating to 7.4 per cent but it couldn't save the economy from posting its slowest growth since Covid-era. Nonetheless, New Delhi's key officials have backed India's growth potential and vouched that the country will retain its title as the fastest-growing major economy in the world. The full-year growth remained within official projections, as private investment remained subdued amid global uncertainties. In the quarter ending March 31, 2025, India's growth stood at 7.4 per cent, on the back of robust industrial activity and sustained global trade tensions grew larger by day. The third quarter had seen growth rise to 6.2 per cent, revised upward from an earlier estimate of 5.6 per cent, showing resilience amid global headwinds. Live Events The fourth quarter was marred by global trade disruptions led by Trump's tariffs and escalation of the Russia-Ukraine war. However, the Indian economy powered through the storm on the back of pick up rural demand and healthy government spending. Moreover, the latest growth figures continue to keep New Delhi in the race of fastest economies in the world. The International Monetary Fund (IMF) also expects India's economic size to surpass Japan's by the end of the year, reaching $4.18 trillion. A notable divergence between GDP and gross value added (GVA) was expected with the latter stripping out taxes and subsidies for a clearer picture of underlying economic activity. The GVA stood at 6.4 per cent. JP Morgan, for instance, estimated March quarter GDP growth at 7.5%, but GVA growth at a more modest 6.7%. Some analysts said that the higher-than-expected GDP print might be a reflection of a fall in government subsidies, which could inflate the headline number without reflecting equivalent real economic momentum. Despite the external challenges, the Indian economy remains relatively healthy due to its limited reliance on global goods trade, recent tax cuts, controlled inflation and a potentially softer interest rate environment. 'While external uncertainties—such as supply chain disruptions and energy market volatility—pose challenges, India continues to benefit from strong service sector performance, a stable banking system, and improving manufacturing output under schemes like PLI,' said Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuations and Ratings Ltd. In February 2025, the RBI had, for the first time in five years, cut the repo rate by 25 bps, a move expected to aid India's growth blitz. Retail inflation dropped to a near six-year low of 3.16% in April, and a favourable monsoon forecast is expected to help stabilize food prices—factors that could allow the Reserve Bank of India (RBI) to consider a rate cut in June. Looking ahead, the RBI has projected 6.5% growth for the fiscal year beginning April 1, 2025. 'On the inflation front, CPI is expected to moderate from 4.9% in FY25 to 4.3% in FY26, aided by easing food prices, prudent monetary policy, and a normal monsoon forecast. However, inflationary risks persist because of global commodity prices and any escalation in geopolitical tensions,' said Sharma.
West Australian
2 days ago
- Politics
- West Australian
DV Helpline staff question end to WFH in NSW after Premier's message
The NSW Department of Criminal Justice will be brought before the Industrial Relations Commission after domestic violence and helpline staff pushed back against a return to work mandate. The Public Service Association (PSA) raised a dispute with the DCJ regarding the department's expectation that call-centre staff return to the office 'principally' or 50 per cent of the time. The mandate would mean staff, including those dealing with DV victims and child protection services, would need to attend the Liverpool or regional office for at least 50 per cent of their shifts. The PSA said the policy came in response to a circular from Premier Chris Minns last year that, while not specifically calling for an end to working from home, said it should not be 'taken for granted'. 'The circular does not strictly prescribe patterns of attendance and allows for ad hoc variations for the needs of employees and organisations,' the PSA said in a statement on Friday morning. 'As per the dispute resolution process, we met with DCJ and asked for feedback as to why they would not consider you for an ad hoc exemption. They have not provided any formal response yet.' Due to a lack of response, the service workers union is now seeking 'the assistance' of the state's Industrial Relations Commission, with the first conciliation meeting held on Wednesday. The PSA said it sought to understand the 'specific operation grounds' the DCJ was using to 'deny the ad hoc exemption', with a further hearing on June 17. 'Yet there have been no operational requirements provided, other than simply the Premier's circular,' the PSA said. 'Your delegates and the PSA do not believe there is any valid operational requirement for an increase in office attendance, as the work you perform has been structured around remote working for the past four years or longer. 'You work in the same manner in the office, as you do from home, with the same processes, practices, and structures.' A meeting between the union and helpline and DV line members is slated for June 2. An end to Covid-era work-from-home arrangements and mandated return to the office has been a significant sticking point in both the private and government sectors in recent years. In his circular, Mr Minns noted the usefulness of WFH arrangements in 'attracting and retaining talented people' since 2019 but said there were 'many ways' to achieve flexible work arrangements. Mr Minns said WFH arrangements were not available to all government employees, and the starting position is that those staff 'work principally in an approved workplace in NSW'. 'Arrangements to work from home on some occasions must take into consideration the wider needs of departments, agencies, the community and stakeholders,' the August circular stated. Mr Minns' opposition to WFH caused friction during the election. The state premier told reporters during the campaign that Prime Minister Anthony Albanese was dealing with different circumstances in his opposition of the Liberals' plan to end WFH for public servants. A report earlier this month found staff at NSW Treasury were in the office only about half the time, or about 2.5 days per week, increasing from an average of 1.7 days per week in July 2024.
