Private Firms in India Experience Slower Sales Growth in FY25
RBI data shows slower sales growth for private firms at 11.4% in FY25
Business Standard
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Net sales of non-financial private companies in India grew by 11.4% in the fiscal year 2024-25, a slight decrease from 11.7% in the previous year, according to Reserve Bank of India data. The services sector led this growth, while manufacturing saw a modest decline in sales growth.
- 01Net sales growth for private companies slowed to 11.4% in FY25.
- 02The services sector recorded the highest growth at 13.5%.
- 03Manufacturing sector growth moderated to 9.2%.
- 04Total paid-up capital reached ₹8,44,198 crore (approximately $102 billion USD).
- 05Operating profit and profit after tax maintained double-digit growth.
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According to data released by the Reserve Bank of India (RBI), non-financial private companies in India experienced a net sales growth of 11.4% in the fiscal year 2024-25, a slight decline from 11.7% in FY24. The services sector led this growth with a 13.5% increase, primarily driven by wholesale and retail trade, real estate, and transport services. In contrast, the manufacturing sector saw a modest slowdown, with sales growth dropping to 9.2% from 9.4% the previous year. The total paid-up capital of these companies amounted to ₹8,44,198 crore (approximately $102 billion USD), representing 40.3% of the total paid-up capital of non-government non-financial private limited companies. Operating expenses increased at a higher rate, influenced by rising manufacturing costs and employee remuneration, which saw growth in the services sector but moderated in manufacturing. Despite these challenges, both operating profit and profit after tax continued to show double-digit growth, reflecting resilience in the overall financial performance of the sector.
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The slower sales growth may indicate challenges for private firms in maintaining profitability, which could affect employment and investment in the economy.
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