India Q3 GDP data FY 2024-25: The Indian economy saw the Gross Domestic Product (GDP) expand at 6.2% in the third quarter of the current financial year 2024-25, with economists stating that the worst of the slowdown is over. India’s GDP for the second quarter had slowed to 5.6% raising concerns on the growth prospects of the world’s fastest growing major economy.
Interestingly, the government data released by the Ministry of Statistics and Program Implementation also revises the full year GDP growth figures for FY 2023-24 to the ‘highest level in 12 years’ except for the post COVID year which was high due to the base effect. We take a look at the top 10 data points from the GDP growth numbers:
1.Real GDP growth for Q3: Real GDP is projected to have expanded by 6.2% during the third quarter of FY 2024-25. The Nominal GDP in Q3 of FY 2024-25 shows an estimated increase of 9.9%. Following an upward revision, the real GDP growth for the second quarter of financial year 2024-25 now stands at 5.6%.
2. Real GDP growth for FY 2024-25: The revised estimates indicate an upward adjustment in India’s real GDP growth, projected at 6.5% for FY 2024-25. Similarly, the nominal GDP growth forecast has been enhanced to 9.9% for FY 2024-25. These figures represent an improvement from the initial projections presented in the first advance estimates.
3. ‘Highest growth in 12 years’: According to the first revised estimates, real GDP expanded by 9.2% during the financial year 2023-24, marking the highest growth rate in the past 12 years, barring financial year 2021-22 (the post-covid year). This robust performance was driven by substantial growth across key sectors, with ‘Manufacturing’ achieving 12.3%, ‘Construction’ reaching 10.4%, and ‘Financial, Real Estate & Professional Services’ attaining 10.3%.
4.Per Capita Income: The Per Capita Net National Income, also known as Per Capita Income, calculated at current prices, shows figures of ₹1,69,145 for 2022-23 and ₹1,88,892 for 2023-24.
5. GDP growth slowdown year-on-year: GDP growth slowed to 6.2 per cent during October-December quarter of the current fiscal year, as against 9.5% in the same quarter of the previous fiscal year. This is primarily attributed to underperformance in mining and manufacturing sectors, whilst agriculture remained the sole bright spot. Nevertheless, when compared to the previous quarter’s growth of 5.6 per cent, the third quarter demonstrated an improvement in economic activity.
6. Real GDP for FY 25: The real GDP or GDP at Constant Prices is projected to reach ₹187.95 lakh crore during fiscal year 2024-25, compared to the first revised estimate of ₹176.51 lakh crore for 2023-24. The nominal GDP or GDP at Current Prices is expected to grow by 9.9%, reaching ₹331.03 lakh crore in 2024-25, up from ₹301.23 lakh crore in 2023-24.
7. Real GVA for FY 25: The real GVA is projected to reach ₹171.80 lakh crore in 2024-25, compared to the first revised estimate of ₹161.51 lakh crore for 2023-24, indicating a growth of 6.4%, which is lower than the 8.6% growth observed in 2023-24. The nominal GVA is expected to achieve ₹300.15 lakh crore in FY 2024-25, in contrast to ₹274.13 lakh crore in 2023-24, demonstrating a growth rate of 9.5%.
8. Quarterly Sector-wise data: The manufacturing sector’s GVA growth declined to 3.5 per cent in the third quarter, compared to 14 per cent in the corresponding period last year. The mining and quarrying sector experienced a slowdown, with growth reducing to 1.4 per cent from 4.7 per cent a year ago.
Construction activity witnessed a decrease in growth rate to 7 per cent, down from 10 per cent in the previous year. In contrast, the agricultural sector demonstrated remarkable performance with a 5.6 per cent growth during the quarter, significantly higher than the 1.5 per cent growth recorded in the same period last year.
The utility services segment, comprising electricity, gas, water supply and other services, registered a growth of 5.1 per cent in the third quarter, showing a decline from 10.1 per cent growth achieved in the corresponding period of the previous year.
9. Important annual projections: The construction sector is projected to expand by 8.6% in 2024-25. This is anticipated to be followed by a 7.2% growth in banking, property and business services. Additionally, the commerce, hospitality, logistics, communications and broadcast-related services sector is expected to grow by 6.4% during the same period.
10. Private Final Consumption Expenditure: Private Final Consumption Expenditure (PFCE) is projected to achieve a robust expansion of 7.6% in 2024-25, showing significant improvement from the 5.6% growth recorded in 2023-24.
