India’s economic growth has significantly improved in the third quarter (Q3) of FY 2024-25, with Real GDP rising to 6.2%, an increase from the previously reported 5.4% in the last quarter. This encouraging growth trend is supported by revised estimates, which now project India’s Real GDP growth at 6.5% for the entire financial year 2024-25. Additionally, the Nominal GDP is anticipated to grow at a rate of 9.9%, both figures being revised upwards from the First Advance Estimates.
This article delves into the various aspects of India’s economic performance, sectoral contributions, and projected growth trends for FY 2024-25.
India’s Real and Nominal GDP Growth in Q3 of FY 2024-25
Real GDP Growth
The Real GDP (GDP at Constant Prices) for the third quarter of FY 2024-25 is estimated to be Rs 47.17 lakh crore, up from Rs 44.44 lakh crore in the same quarter of FY 2023-24, indicating a growth rate of 6.2%. Furthermore, the growth rate for Real GDP in the second quarter of FY 2024-25 has been revised upward to 5.6%, an increase from the earlier estimate of 5.4%.
Nominal GDP Growth
In Q3 of FY 2024-25, the Nominal GDP (GDP at Current Prices) is estimated to reach Rs 84.74 lakh crore, an increase from Rs 77.10 lakh crore in Q3 of FY 2023-24, marking a growth rate of 9.9%. This positive adjustment in estimates highlights strong economic momentum, driven by essential sectors such as Manufacturing, Construction, and Financial Services.
Economic Performance in FY 2023-24
According to the First Revised Estimates, India’s Real GDP grew by 9.2% in FY 2023-24, marking the highest growth in the past 12 years, except for the post-pandemic FY 2021-22.
Key Contributors to Growth in FY 2023-24
- Manufacturing Sector: Registered an impressive growth of 12.3%.
- Construction Sector: Showed a growth rate of 10.4%.
- Financial, Real Estate & Professional Services: Recorded a growth rate of 10.3%.
These double-digit growth rates played a crucial role in India’s overall economic expansion during FY 2023-24.
Sectoral Growth Projections for FY 2024-25
The sector-wise growth projections for FY 2024-25 highlight key drivers of the Indian economy:
1. Construction Sector
- Estimated to grow at 8.6% in FY 2024-25, showcasing continued expansion in infrastructure and real estate activities.
2. Financial, Real Estate & Professional Services
- Expected to observe a growth rate of 7.2%, indicating a robust financial and professional services industry.
3. Trade, Hotels, Transport, Communication & Services related to Broadcasting
- This sector is projected to grow by 6.4%, reflecting a positive trend in consumer-driven services.
