India’s Economic Growth in Q3 of FY 2024-25: A Detailed Analysis

India’s economic growth has shown a remarkable improvement in the third quarter (Q3) of FY 2024-25, with the Real GDP increasing to 6.2%, up from an initially reported 5.4% in the previous quarter. This positive growth trajectory is reflected in the revised estimates, which project India’s Real GDP growth at 6.5% for the full financial year 2024-25. Furthermore, the Nominal GDP is expected to witness a growth rate of 9.9%, both of which are 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) in Q3 of FY 2024-25 has been estimated at Rs 47.17 lakh crore, compared to Rs 44.44 lakh crore in Q3 of FY 2023-24, reflecting a growth rate of 6.2%.

Additionally, the growth rate of Real GDP for Q2 of FY 2024-25 has been revised upward to 5.6% from the previously estimated 5.4%.

Nominal GDP Growth

The Nominal GDP (GDP at Current Prices) in Q3 of FY 2024-25 is estimated at Rs 84.74 lakh crore, compared to Rs 77.10 lakh crore in Q3 of FY 2023-24, showing a growth rate of 9.9%.

This positive revision in estimates signals strong economic momentum, driven by key 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

1. Manufacturing Sector: Registered an impressive growth of 12.3%.
2. Construction Sector: Showed a growth rate of 10.4%.
3. 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.

Private Final Consumption Expenditure (PFCE) Trends

One of the key indicators of domestic demand and consumer spending, Private Final Consumption Expenditure (PFCE), is set to witness strong growth in FY 2024-25.

• PFCE is expected to grow by 7.6%, compared to the 5.6% growth observed in FY 2023-24.
• This improvement suggests higher consumer spending, which is a positive sign for businesses and the overall economic momentum.

Gross Value Added (GVA) Trends in Q3 of FY 2024-25

Real GVA (Gross Value Added) Growth

• Real GVA in Q3 of FY 2024-25 is estimated at Rs 43.13 lakh crore, compared to Rs 40.60 lakh crore in Q3 of FY 2023-24.
• This translates to a growth rate of 6.2%.

Nominal GVA Growth

• Nominal GVA in Q3 of FY 2024-25 is estimated at Rs 77.06 lakh crore, compared to Rs 69.90 lakh crore in Q3 of FY 2023-24.
• The growth rate of 10.2% indicates strong business activity and inflation-adjusted gains.

India’s Q3 FY 2024-25 Economic Growth Summary