By Moneyvesta posted on January 1st, 1970

India’s GDP grows 6.2% in Q3; economy to expand at 6.5% in FY25

The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its Second Advance Estimates has showed that the Indian economy grew 6.2 per cent in the third quarter (October-December) of the current fiscal (FY25) against 9.5 per cent in the year-ago period, mainly due to poor performance by mining, manufacturing and all other sectors, with the exception of agriculture. The 6.2 per cent growth in GDP (gross domestic product) was higher than a revised reading of 5.6 per cent expansion (5.4 per cent earlier) in the July-September 2024 period. However, it was lower than the RBI’s estimate of 6.8 per cent for the period.

For the full 2024-25 fiscal (April 2024 to March 2025), the government now pegs GDP growth at 6.5 per cent, marginally higher than 6.4 per cent estimated in the first advance estimate released in January, but it is below the revised growth rate of 9.2 per cent for 2023-24. The growth in the current fiscal and less than 7 per cent expected in the next will keep India as the fastest-expanding major economy.

Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 187.95 lakh crore in the financial year 2024-25, against the First Revised Estimate of GDP for the year 2023-24 of Rs 176.51 lakh crore. Nominal GDP or GDP at Current Prices is estimated to attain a level of Rs 331.03 lakh crore in the year 2024-25, against Rs 301.23 lakh crore in 2023-24, showing a growth rate of 9.9 per cent.

The manufacturing sector’s output growth, as per the gross value added (GVA), in the third quarter dipped to 3.5 per cent from 14 per cent in the year-ago period. Mining and quarrying production growth slowed to 1.4 per cent in the third quarter from 4.7 per cent a year ago. The construction sector growth too slipped to 7 per cent from 10 per cent a year ago. The electricity, gas, water supply, and other utility services segment grew 5.1 per cent in the third quarter against 10.1 per cent a year earlier. 

The GVA growth in the services sector - trade, hotel, transport, communication and services related to broadcasting - was 6.7 per cent during the third quarter against 8 per cent. Financial, real estate and professional services grew by 7.2 per cent in the third quarter over 8.4 per cent earlier. However, the output of the Agriculture, Livestock, Forestry & Fishing sector increased by an impressive 5.6 per cent during the quarter compared to a growth of 1.5 per cent in the year-ago period. Also, Public administration, defense and other services posted 8.8 per cent growth, marginally up from 8.4 per cent in the third quarter of the last fiscal.

Source: Ace Equity

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