India’s real GDP in the third quarter (Q3) of FY 2024-25 is projected to expand at a rate of 6.2 per cent, data from the Ministry of Statistics and Programme Implementation (MoSPI) said on Friday. This marks a spike from the GDP growth of 5.4 per cent in the last quarter.
The construction sector recorded the highest growth at 8.6 per cent, followed by financial, real estate, and professional services at 7.2 per cent.
Trade, hotels, transport, communication, and broadcasting-related services were at 6.4 per cent, while the private final consumption expenditure also rose by 7.6 per cent, reflecting a rebound in consumer spending.
As a result, the government has revised its full-year real GDP growth projection for FY25 to 6.5 per cent, from 6.4 per cent.
For the full fiscal year 2024-25, the Indian economy is expected to grow at 6.5 per cent in Real GDP terms, an upward revision from earlier estimates. The nominal GDP is projected to increase by 9.9 per cent , signaling continued economic expansion.
Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said, “The lower growth was also due to an unfavourable base effect where the numbers for the same quarter last year was revised upwards from 8.6 per cent to 9.5 per cent.
“While on the expenditure side, private consumption remained robust, the investment growth further moderated as against our expectation. Moreover, the moderation in the GDP number can be attributed to the discrepancies, which came at negative 1.05 lakh crore,” Hajra added.
Notably, the GDP growth stood at 8.6 per cent in Q3FY24 before declining to 7.6 per cent in Q4FY24.
It further moderated to 6.7 per cent in Q1FY25 and dropped to 5.4 per cent in Q2FY25, taking most India-watchers by surprise; they hadn’t expected such a steep slowdown.
The Reserve Bank of India (RBI) has pegged the annual growth rate at 6.6 per cent for the current fiscal year, ending March 2025. The RBI has pegged GDP growth for FY26 at 6.7 per cent, with quarterly estimates Q1FY26 at 6.7 per cent; Q2FY26 at 7 per cent; Q3FY26 at 6.5 per cent; and Q4FY26 at 6.5 per cent.