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GDP growth at 6.2% in Q3, pegged at 6.5% for 2024-25

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GDP growth at 6.2% in Q3, pegged at 6.5% for 2024-25

New Delhi: India’s economic growth in the three months to Dec rebounded on the back of arecovery in govt and consumer spending, exports and a robust farm sector, while services remained steady.
Data released by National Statistical Office on Friday showed GDP grew by 6.2% in the Oct-Dec quarter of the current fiscal year, rising from the upwardly revised 5.6% in the July-Sept period. Growth had slowed to a seven-quarter low of 5.4% in the three months to July, triggering calls for measures to revive growth.
For the full year, NSO expects the economy to grow by 6.5% in 2024-25 from the earlier projection of 6.4% and lower than 9.2% in 2023-24. This still makes India the fastest growing major economy in the world against the backdrop of upheaval in the global economy and geopolitical tensions. To meet the 6.5% growth estimate, the economy will need to expand by 7.6% in fourth quarter, which could be a tough task given global economic turmoil and the impact of US President Donald Trump’s tariff policy.
NSO also revised full year and quarterly growth for the past years with the sharpest upgrade for FY24 growth to 9.2% from the earlier 8.2%. It also revised FY23 growth from 7% to 7.6%. The 9.2% growth rate is the highest in the previous 12 years except 2021-22, which was a post-Covid year.
“The Union Budget’s emphasis on agriculture, MSMEs, investment, and exports is likely to enhance India’s medium-term economic prospects,” said chief economic adviser V Anantha Nageswaran.

Farming- A bright spot

The data showed that govt spending rose 8.3% in the Oct-Dec quarter from 3.8% in the previous three month period while private consumption spending rose 6.9% in the third quarter from 5.9% in the previous quarter.
The farm sector grew 5.6% in the third quarter, rising from the 4.1% in the previous three month period. The robust farm sector has helped boost rural demand, helping the overall economy. The manufacturing sector remained sluggish, rising 3.5% during Oct-Dec, rising from 2.1% in the previous quarter but below the 14% in the third quarter of 2023-24.
The financial, insurance, real estate and professional services’ and ‘public administration, defence and other services’ grew over 7%.





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