India’s Gross Domestic Product (GDP) growth accelerated to 6.2 per cent in the third quarter (October-December) of the financial year 2024-25, marking an increase from the revised figure of 5.6 per cent recorded in the second quarter. The acceleration in growth has been attributed to stronger rural consumption, supported by a favorable monsoon, as well as increased government expenditure on infrastructure projects, according to data released by the Ministry of Statistics on Friday.
The report further states that the GDP growth rate for the financial year 2024-25 is now projected to be 6.5 per cent. Meanwhile, the economic growth rate for the previous financial year, 2023-24, has been revised to an impressive 8.2 per cent—marking a 12-year high.
Additionally, the growth rate of Real GDP for the second quarter (Q2) of 2024-25 has been revised upwards to 5.6 per cent, reflecting improved economic momentum.
Sector-wise analysis shows that the construction sector has played a crucial role in the economy, posting an estimated growth rate of 8.6 per cent during 2024-25. The financial, real estate, and professional services sector followed with a growth rate of 7.2 per cent, while the trade, hotels, transport, communication, and services related to broadcasting sector registered a growth of 6.4 per cent.
A significant indicator of economic activity, Private Final Consumption Expenditure (PFCE), is projected to grow by 7.6 per cent during 2024-25. This marks an improvement from the 5.6 per cent growth observed in the previous financial year, 2023-24, signifying an uptick in consumer spending.
The first revised estimates of the ministry also highlight that real GDP grew by 9.2 per cent in 2023-24—one of the highest growth rates recorded in the past 12 years, barring the exceptional post-COVID recovery seen in 2021-22.
A deeper breakdown of this growth reveals that it was largely driven by double-digit expansion in key industries:
- Manufacturing sector recorded a 12.3 per cent growth rate.
- Construction sector grew at 10.4 per cent.
- Financial, real estate, and professional services sector expanded by 10.3 per cent.
Similarly, final estimates for the financial year 2022-23 show that real GDP posted a growth rate of 7.6 per cent, bolstered by robust expansion in several key sectors:
- Trade, hotels, transport, communication, and services related to broadcasting sector grew by 12.3 per cent.
- Financial, real estate, and professional services sector expanded by 10.8 per cent.
- Electricity, gas, water supply, and other utility services sector also saw a 10.8 per cent growth rate.
The latest economic data underscores India’s resilience and sustained growth momentum, driven by strong domestic demand, infrastructure investments, and a favorable policy environment.
