India’s GDP Grows by 6.2% in Q3 FY25, Annual Growth Projected at 6.5%

India’s economy expanded by 6.2% in the third quarter (Q3) of the financial year 2024-25, according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The nominal GDP growth rate for the same period was 9.9%, indicating a stable economic momentum.

The Q3 growth comes after an upward revision of the second quarter’s GDP growth rate to 5.6%, reflecting a stronger-than-expected economic performance. The real GDP growth rate for the entire financial year 2024-25 is now projected at 6.5%, slightly higher than the previous estimate of 6.4%.

Strong Rural Demand and Agricultural Growth

One of the key drivers behind this quarter’s growth was the rise in rural demand, largely influenced by a favorable monsoon and improved agricultural output. Higher production of major Kharif crops contributed to increased rural incomes, leading to an estimated 4.5% growth in the agriculture sector—a sharp improvement from just 0.4% in Q3 FY24.

The 9.2% real GDP growth rate recorded in FY 2023-24 marked the highest annual expansion in the past 12 years, except for the post-pandemic rebound in 2021-22. However, even with the upward revision in FY25, this year’s projected growth remains the slowest in four years.

Economic Resilience Amid Revised Estimates

Commenting on the figures, Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, noted that while the sharp upward revisions in GDP data for the past two years indicate economic resilience, much of the FY25 growth appears to be driven by revised Q2 estimates rather than a significant acceleration in Q3.

India’s economic performance in the coming months will depend on sustained rural consumption, global economic conditions, and policy measures aimed at maintaining growth momentum. Experts believe that continued investment in infrastructure, manufacturing, and digital transformation will play a critical role in shaping India’s economic trajectory in the next fiscal year.