India’s GDP Grows 6.2% in Q3 FY 2024-25
India’s economy has shown signs of recovery, with the Gross Domestic Product (GDP) expanding by 6.2% in the third quarter of the fiscal year 2024-25. This growth follows a slowdown to 5.6% in the previous quarter, alleviating concerns about the trajectory of the world’s fastest-growing major economy. The Ministry of Statistics and Program Implementation has also revised the GDP growth figures for the previous fiscal year, marking the highest growth rate in over a decade, excluding the post-COVID spike.
Key Growth Indicators
The latest data reveals that India’s real GDP is projected to reach ₹187.95 lakh crore in FY 2024-25, with nominal GDP expected to grow by 9.9%. The revised estimates indicate an upward adjustment in real GDP growth to 6.5% for the current fiscal year. This is a notable increase from earlier projections, reflecting a more optimistic economic outlook. The nominal GDP growth forecast has also been enhanced, indicating a robust economic recovery.
Sector Performance Highlights
The growth in GDP has been driven by significant advancements in various sectors. Notably, the manufacturing sector achieved a remarkable growth rate of 12.3%, while construction and financial services also reported strong performances, with growth rates of 10.4% and 10.3%, respectively. However, the mining sector faced challenges, with growth slowing to 1.4%. Agriculture emerged as a bright spot, demonstrating a growth rate of 5.6%, significantly higher than the previous year’s performance.
Year-on-Year Comparisons
When comparing year-on-year growth, the GDP growth of 6.2% in the October-December quarter of FY 2024-25 is a decline from the 9.5% recorded in the same quarter of the previous fiscal year. This slowdown is primarily attributed to underperformance in the mining and manufacturing sectors. Despite this, the third quarter’s growth represents an improvement over the previous quarter’s 5.6%, suggesting a gradual recovery in economic activity.
Future Projections
Looking ahead, the construction sector is projected to expand by 8.6% in FY 2024-25, followed by a 7.2% growth in banking and business services. The commerce, hospitality, and logistics sectors are also expected to grow by 6.4%. Additionally, Private Final Consumption Expenditure (PFCE) is anticipated to rise by 7.6%, indicating a strengthening consumer demand. These projections reflect a positive outlook for India’s economy as it navigates through the challenges of the global economic landscape.
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