Home/
Allahabad, AndhraPradesh, Arbitration, Bombay, Budget, CA CS CMA, Calcutta, Chattisgarh, Civil, Company, Company Law, Compensation, Constitution Law, Consumer, Contempt, Corp Law, Court Directions, Criminal, Customs, Delhi, DGFT, Digests, Dish of Chq, E-paper, Education, Election, EPF, ESIC, Eviction, Evidence, Excise, Family, Finance, Gauhati, Gauhati Digest, GST, Gujarat, HIGH Court Judgements, High Courts, Himachal Digests, Himachal Pradesh, Income tax, J & K, Jharkhand, Karnataka, Kerala, Know The Law, L & S, Land Acquisition, Limitation, MACT, Madhya Pradesh, Madras, Manipur, Maxims, Meghalaya, Old is Gold, Opinion, Orissa, P & H, Patna, Quashing, Rajasthan, RBI, SC Digests, SEBI, Service Law, Service Tax, Sikkim, Students, Supreme Court, Taxation, Telangana, Top Stories, Tripura, Uncategorized, Uttarakhand, Videos, Words and Phrases

India’s Economy To Expand 6.4% In FY25, Lowest in Four Years: Government Data

Tax Research

Last Updated:January 07, 2025, 17:35 IST

The Indian economy is estimated to grow at 6.4 per cent in 2024-25 against 8.2 per cent in the previous fiscal year

India’s economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25, mainly on account of poor showing by the manufacturing and services sector, according to government data released on Tuesday.

The gross domestic product (GDP) rate of 6.4 per cent will be the lowest since the Covid year (2020-21) when the country witnessed a negative growth of 5.8 per cent. It was 9.7 per cent in 2021-22; 7 per cent in 2022-23; and 8.2 per cent in the last fiscal ended March 2024.

The first advance estimates of National Income for 2024-25 released by the National Statistics Office (NSO) is lower than the 6.6 per cent projected by the Reserve Bank in December 2024. It is also a tad lower than the finance ministry’s initial projection of 6.5-7 per cent.

The advance estimates will be used in preparation for the Union Budget to be presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on February 1.

Aditi Nayar, Chief Economist and Head – Research & Outreach, ICRA, said, “The NSO’s FAE for India’s GDP and GVA growth of 6.4% each in FY2025, is slightly lower than our forecast of 6.5% each, led by mining, manufacturing, and services.”

Nayar added that the NSO has effectively implicitly pegged the growth in the GDP and GVA for H2 FY2025 at 6.7% and 6.6%, respectively, “a mild 10-20 bps lower than our projections for the same.”

“In our view, the GDP growth in FY2026 will be crucially influenced by global uncertainties as well as domestic uncertainties, amidst considerable base effects. Benefitting from an anticipated capex push in the upcoming Budget, we project the GDP growth at 6.5% in FY2026.”

The manufacturing sector output is expected to decelerate to 5.3 per cent from a high of 9.9 per cent recorded in the previous fiscal, NSO said in the first advance estimates of National Income for 2024-25.

The services sector, comprising trade, hotels, transport and communications, is estimated to expand at 5.8 per cent against 6.4 per cent in 2023-24.

On the other hand, the farm sector is estimated to record a growth of 3.8 per cent in the current fiscal, up from 1.4 per cent in 2023-24.

“Real GDP has been estimated to grow by 6.4 per cent in FY 2024-25 as compared to the growth rate of 8.2 per cent in Provisional Estimate (PE) of GDP for FY 2023-24,” NSO said.

Nominal GDP has witnessed a growth rate of 9.7 per cent in 2024-25 over the growth rate of 9.6 per cent in 2023-24.

According to the data, nominal GDP (GDP at current prices) is estimated to attain a level of Rs 324.11 lakh crore in the year 2024-25 against Rs 295.36 lakh crore in 2023-24, showing a growth rate of 9.7 per cent.

The size of the economy, as per the current estimates, is USD 3.8 trillion (@ Rs 85.7/USD) during 2024-25.

Further, the nominal Gross Value Added (GVA) is estimated to attain a level of Rs 292.64 lakh crore in 2024-25 against Rs 267.62 lakh crore in 2023-24, showing a growth rate of 9.3 per cent.

Private Final Consumption Expenditure (PFCE) at constant prices has witnessed a growth rate of 7.3 per cent during 2024-25 over the growth rate of 4 per cent in the previous financial year.

Government Final Consumption Expenditure (GFCE) at Constant Prices has rebounded to a growth rate of 4.1 per cent compared to the growth rate of 2.5 per cent in the previous fiscal.

Key Highlights:

Real GDP has been estimated to grow by 6.4% in FY 2024-25 as compared to the growth rate of 8.2% in Provisional Estimate (PE) of GDP for FY 2023-24.
Nominal GDP has witnessed a growth rate of 9.7% in FY 2024-25 over the growth rate of 9.6% in FY 2023-24.
Real GVA has grown by 6.4% in FY 2024-25 over the growth rate of 7.2% in FY 2023-24.
Nominal GVA has shown a growth rate of 9.3% in FY 2024-25 as compared to the growth rate of 8.5% in FY 2023-24.
Real GVA of Agriculture and allied sector has been estimated to grow by 3.8% during 2024-25 as compared to the growth of 1.4% witnessed during the last year, i.e., 2023-24.
Real GVA of ‘Construction’ sector and ‘Financial, Real Estate & Professional Services’ sector has been estimated to observe good growth rates of 8.6% and 7.3%, respectively during the FY 2024-25.
Private Final Consumption Expenditure (PFCE) at Constant Prices, has witnessed a growth rate of 7.3% during FY 2024-25 over the growth rate of 4.0% in the previous financial year.
Government Final Consumption Expenditure (GFCE) at Constant Prices, has rebounded to a growth rate of 4.1% as compared to the growth rate of 2.5% in the previous financial year.

News business » economy India’s Economy To Expand 6.4% In FY25, Lowest in Four Years: Government Data

Source link

Rise Of Electric Vehicles In India: Experts See Business Opportunities For MSMEs

January 8, 2025 No Comments

Last Updated:January 07, 2025, 16:14 IST

Experts said that the rise of electric vehicles presents a tremendous opportunity for MSMEs in India

As India moves towards a greener future, the electric vehicle (EV) sector is quickly becoming a key player in the country’s growth trajectory. With growing investments, technological innovations, and government incentives, the rise of EVs presents a wealth of business opportunities, especially for Micro, Small, and Medium Enterprises (MSMEs). Experts weigh in on the challenges and opportunities that lie ahead.

Avesh Memon, Founder & CEO of Rilox EV; Rajeev YSR, CEO of Thunder Plus and Group CMO at ETO Motors; and Rahul Nain, Director of Business Operations at Luxorides, provide diverse insights into the EV sector. Their perspectives highlight the critical role of infrastructure, policy, innovation, and collaboration in unlocking the potential of electric mobility for MSMEs in India.

Building the Charging Infrastructure: A Key Challenge for Widespread EV Adoption by 2025

Avesh Memon points out that creating a robust EV charging infrastructure by 2025 is no small feat. The need to balance scalability with accessibility is critical, especially in rural areas where infrastructure could be underserved. Additionally, the strain on power grids, requiring upgrades and better peak demand management, must be addressed. “Collaboration between the public and private sectors is essential,” he says, emphasising that modular charging systems and universal standards can help overcome these hurdles.

Memon also believes that government policies and incentives will play a crucial role in boosting EV adoption. The introduction of subsidies under schemes like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) has already made EVs more affordable, and continued support will further stimulate demand. By promoting local manufacturing and incentivising private investments, the sector can reach its potential by 2025.

Supporting the Growth of Affordable EVs: Balancing Quality, Innovation, and Affordability

With the rise of affordable EVs, companies like Rilox EV are focused on balancing innovation with cost-effectiveness. Memon explains that by localising supply chains and integrating cutting-edge technologies like IoT and AI, the company has managed to optimise vehicle performance while keeping costs low for the consumer. “Innovation, affordability, and sustainability drive our vision for the future,” he says, highlighting their strategy of modular designs that allow for easy upgrades without compromising on quality.

Sustainability and Carbon Emission Reduction: Aligning with Global Goals

Rajeev YSR, CEO of Thunder Plus and Group CMO at ETO Motors, stresses that India’s EV transition must contribute meaningfully to reducing carbon emissions. “Adopting clean energy sources for EV charging is paramount,” he says, noting that integrating solar and wind power into the grid will ensure that EVs contribute to emission reductions. YSR also advocates for localised manufacturing of EV components, including batteries, to reduce the environmental impact of imports.

State governments also have a critical role to play, especially in Tier-2 and Tier-3 cities. YSR suggests that localised incentives, decentralised charging networks, and public transport electrification programs can accelerate EV adoption in these areas, making EVs more accessible and affordable to a wider population.

Encouraging R&D in Battery Technologies: A Path to Sustainability

To make EV batteries more sustainable and reduce dependence on rare earth materials, YSR highlights the importance of R&D into alternative battery technologies. “Sodium-ion and solid-state batteries present viable alternatives,” he says. Policymakers, he argues, should incentivise collaborations between academic institutions, startups, and industry leaders to drive breakthroughs in battery recycling and second-life applications.

Business Opportunities for Rental Companies in a Shared Mobility World

With urban populations shifting towards shared mobility, rental companies are tapping into new opportunities. Rahul Nain, Director of Business Operations at Luxorides, explains that car rental services are evolving to meet the growing demand for eco-friendly and affordable travel. “With more consumers opting for shared mobility over ownership, companies like ours are diversifying fleets to include electric and hybrid vehicles,” he says.

However, Nain notes that scaling EV rental services faces challenges such as the limited charging infrastructure and high upfront costs. To address these concerns, Luxorides is focusing on educating customers about the benefits of EVs and alleviating range anxiety. Partnerships between rental companies and public transport systems could play a crucial role in accelerating EV adoption. “These collaborations can provide last-mile connectivity, making green travel solutions more accessible and affordable,” Nain adds.

An Ecosystem of Innovation, Policy, and Collaboration

The rise of electric vehicles presents a tremendous opportunity for MSMEs in India, from manufacturing and infrastructure development to R&D and rental services. The future of mobility is not only green but also offers multiple avenues for business growth and innovation. The road ahead will require collaboration between the public and private sectors, focused policies, and technological advancements, but the shift to a sustainable, electric future is well within reach.

News business Rise Of Electric Vehicles In India: Experts See Business Opportunities For MSMEs