Q3 GDP: India’s economy grew by 6.2% in October-December

India’s real GDP has been estimated to grow at 6.5 per cent while nominal GDP is expected to grow at 9.9 per cent in FY2024-25, according to data released by the Statistics and Programme Implementation Ministry on Friday.

Meanwhile, real GDP is estimated to grow by 6.2 per cent in the October-December 2024 quarter while nominal GDP is estimated to grow at 9.9 per cent in the same period.

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These estimates are released both at constant (2011-12) and current prices, in accordance with the release calendar of National Accounts.

The press release also noted that the estimates for GDP growth in the July-September quarter have been revised upwards to 5.6 per cent.

Annual estimates for FY25

According to the Statistics and Programme Implementation Ministry, real GDP is estimated to hit ₹187.95 lakh crore in FY25 against the revised estimate of ₹176.51 lakh crore for FY24.

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Meanwhile, nominal GDP is expected to reach ₹331.03 lakh crore in FY25 against ₹301.23 lakh crore in FY24.

In FY25, Public Administration, Defence and Other Services are expected to witness an 8.8 per cent growth rate in real gross value added, followed by the Construction sector (8.6 per cent) and the Financial, Real Estate and Professional Services sector (7.2 per cent).

Quarterly estimates for FY25

Real GDP, or GDP at constant prices, in the third quarter of FY25 is estimated to grow to ₹47.17 lakh crore, up from ₹44.44 lakh crore in the October-December 2023 quarter.

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Nominal GDP, on the other hand, is expected to rise to ₹84.74 lakh crore in Q3 of FY25 against ₹77.10 lakh crore in Q3 of FY24.

Agriculture, Livestock, Forestry and Fishing sector is expected to contribute the most to nominal gross value added in Q3 of FY25, at 22 per cent. It is expected to be followed by Financial, Real Estate and Professional Services sector at 20 per cent and Trade, Hotels, Transport, Communication and Services related to Broadcasting sector at 18 per cent.

Commenting on the numbers, Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said, “The lower growth was also due to unfavourable base effect where the numbers for the last year same quarter was revised upwards from 8.6% to 9.5%.”

“Sector wise analysis show that the agriculture sector growth at 5.6% continuing its momentum while the service sector growth at 7.4% remained robust. The industrial sector growth also recovered to 4.5% from the second quarter low. While on the expenditure side private consumption remained robust, the investment growth further moderated as against our expectation,” he added.