India’s GDP grew 6.2% in Q3 2024-25, up from 5.6% in Q2

India’s economy grew by 6.2% in the third quarter of the financial year 2024-25, according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Friday. The growth rate in nominal GDP for the same quarter has been estimated at 9.9%. The October-December growth was higher than the 5.6% recorded in the July-September quarter. However, it fell short of the Reserve Bank of India’s (RBI) forecast of 6.8%.
The GDP figures for both April-June and July-September also grew at a slower pace than the central bank’s estimates. The weaker-than-expected GDP growth can be attributed to sluggish consumption and recent stock market performance. The RBI has projected real GDP growth for 2024-25 at 6.6%, with the economy expected to expand by 7.2% in the January-March quarter, according to its December monetary policy review.
According to estimates by the Ministry of Statistics and Programme Implementation, India’s real GDP is expected to grow by 6.5% in 2024-25, compared to 8.2% in 2023-24, which is 10 basis points lower than the RBI’s projection. Meanwhile, nominal GDP is projected to grow at 9.7% in 2024-25, slightly above the 9.6% growth recorded in 2023-24. For 2025-26, India’s economy is expected to expand between 6.3% and 6.8%, as outlined in the Economic Survey presented on January 31.
India remained the fastest-growing major economy, recording 8.2% GDP growth in 2023-24, following 7.2% growth in 2022-23 and 8.7% in 2021-22. The World Bank on Friday said that India must sustain an average growth rate of 7.8% over the next 22 years to realize its vision of becoming a developed nation by 2047. However, it stressed that achieving this goal would depend on bold reforms and their effective execution.

(Business Correspondent)