India’s GDP Growth Rises to 6.2% in Q3, Forecasted at 6.5% for 2024-25

India's Gross Domestic Product (GDP) growth accelerated to 6.2% in the third quarter (October-December) of the 2024-25 financial year, from the revised 5.6% in the second quarter, as per data released by the Ministry of Statistics on Friday.

The growth was led by strong rural consumption, fueled by a good monsoon, and higher government expenditure on infrastructure activities.

The nation's GDP expansion during the entire financial year 2024-25 is currently estimated at 6.5%, and economic growth in 2023-24 has been upgraded to a record 8.2%—the best in 12 years, according to official data.

The updated estimates show Real GDP growth in the second quarter of 2024-25 was revised to 5.6%.

Among major industries, the construction sector is projected to have increased by 8.6%, while the 'financial, real estate & professional services' sector grew by 7.2%. The 'trade, hotels, transport, communication & services related to broadcasting' sector, on the other hand, grew by 6.4% during the 2024-25 financial year.

Private Final Consumption Expenditure (PFCE), an important household spending indicator, is projected to grow by 7.6% during 2024-25, a significant improvement from 5.6% growth in the last year.

The initial revised estimates also show that real GDP grew by 9.2% in 2023-24, the highest growth since the last 12 years, with the exception of 2021-22 due to the COVID post-recovery.

This remarkable economic growth was spearheaded by impressive performances in the 'manufacturing' sector with a 12.3% growth rate, followed by the 'construction' sector at 10.4% and the 'financial, real estate & professional services' sector at 10.3%, according to the ministry report.

Also, preliminary estimates for 2022-23 indicate that real GDP increased by 7.6% led mainly by double-digit growth in major sectors like 'trade, hotels, transport, communication & services related to broadcasting' (12.3%), 'financial, real estate & professional services' (10.8%), and 'electricity, gas, water supply & other utility services' (10.8%), as per official figures.