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Economic Review June 20254www.projectstoday.comIndia%u2019s Real Gross Domestic Product (GDP) for the financial year 2024-25 is estimated to grow at 6.5 percent, while Nominal GDP is projected to expand by 9.8 percent over the previous year. In Q4 of FY 2024-25, Real GDP grew by 7.4 percent, and Nominal GDP registered a rise of 10.8 percent Year-on-Year.Among sectors, Construction has emerged as a strong performer, posting a growth of 9.4 percent in FY 2024-25 and an even higher 10.8 percent in Q4. This is followed by Public Administration, Defence & Other Services, which recorded an annual growth of 8.9 percent and 8.7 percent in the fourth quarter. The Financial, Real Estate & Professional Services sector also maintained momentum, growing by 7.2 percent annually and 7.8 percent in Q4.The Primary Sector saw a notable improvement, registering a growth of 4.4 percent in FY 2024-25 compared to 2.7 percent in the previous fiscal. In Q4 alone, this sector reported a growth of 5.0 percent, a substantial rise from 0.8 percent in the same period last year.In terms of expenditure, Private Final Consumption Expenditure (PFCE) increased by 7.2 percent in FY 2024-25, up from 5.6 percent in FY 2023-24. Gross Fixed Capital Formation (GFCF), a measure of investment in fixed assets, rose by 7.1 percent during the year and 9.4 percent in Q4.Annual Estimates (FY 2024-25)Real GDP (at constant prices) for FY 2024-25 is projected at Rs 187.97 lakh crore, up from Rs 176.51 lakh crore in FY 2023-24, marking a 6.5 percent increase. Nominal GDP (at current prices) is estimated at Rs 330.68 lakh crore, compared to Rs 301.23 lakh crore in the previous year, reflecting a 9.8 percent growth.Real GVA is projected at Rs 171.87 lakh crore, showing a 6.4 percent rise from Rs 161.51 lakh crore in FY 2023-24. Nominal GVA is expected to touch Rs 300.22 lakh crore, up 9.5 percent from Rs 274.13 lakh crore in the previous year.Quarterly Estimates (Q4 FY 2024-25)Real GDP stands at Rs 51.35 lakh crore, a 7.4 percent increase from Rs 47.82 lakh crore in Q4 of FY 2023-24. Similarly, the nominal GDP is estimated at Rs 88.18 lakh crore, growing 10.8 percent from Rs 79.61 lakh crore in the same quarter last year.Real GVA is at Rs 45.76 lakh crore, reflecting a 6.8 percent growth over Rs 42.86 lakh crore in Q4 FY 2023-24. Likewise, the nominal GVA reached Rs 79.46 lakh crore, registering a 9.6 percent increase from Rs 72.51 lakh crore in the same quarter of the previous year.RBI: Repo Rate Reduced to 5.5%The Monetary Policy Committee (MPC), led by RBI Governor Shri Sanjay Malhotra, held its 55th meeting from June 4 to 6, 2025. After reviewing the evolving macroeconomic landscape, the committee decided to reduce the policy repo rate by 50 basis points, bringing it down to 5.50 percent with immediate effect. Consequently, the standing deposit facility (SDF) rate was revised to 5.25 percent, while the marginal standing facility (MSF) rate and the Bank Rate were adjusted to 5.75 percent. This move aligns with the medium-term inflation target of 4 percent (within a tolerance band of +/- 2 percent) and aims to foster economic growth.Outlook on Growth and Inflation:While global economic uncertainty has somewhat receded since April 2025 due to temporary tariff relief and optimism