New Delhi, Feb 28 Despite geopolitical headwinds, India's growth at 6.2 per cent in Q3 FY 2024-25 reflects its resilience and the effectiveness of policies, industry bodies and experts said on Friday.
The growth is largely driven by the strong performance of agriculture and allied sectors, which saw a growth rate of 5.6 per cent in Q3.
"This rebound is expected to boost farmers' income and further enhance agricultural productivity and rural growth," PHDCCI President Hemant Jain said.
The tertiary sector has emerged as a key growth engine, showing an impressive 7.4 per cent growth in Q3 FY25. Services such as trade, hotels, transport, communication, and broadcasting services have witnessed high growth of 6.7 per cent, said Jain.
Private final consumption expenditure grew by 6.9 per cent in Q3, showing a steady increase in consumer spending and strength to demand trajectory. The manufacturing sector grew steadily at 3.5 per cent, reflecting the continued strength of India’s manufacturing sector reforms.
The construction sector remains a strong support to India’s economic growth, showing consistent growth of 7 per cent in Q3.
According to Emkay Global Financial Services' Chief Economist Madhavi Arora, massive upward revisions to past years and quarters have made the GDP forecast exercise extremely dynamic.
ICRA's Chief Economist, Aditi Nayar, said that the sequential uptick was led by a pickup in the growth of private and government consumption and a narrower drag on account of net exports.
"At present, we expect the Q4 GDP growth to print at 6.5-6.9 per cent, led by government spending and rural consumption. Consequently, for the full-year FY2025, we expect the GDP growth at 6.3 per cent," she said.
India's FY24 GDP was revised up by 100 bps to 9.2 per cent YoY, marking the highest growth in 12 years, excluding the post-Covid rebound.
The 6.2 per cent GDP growth in Q3 FY25 rate suggests a resilient and expanding economy, supported by strong consumption, increased government spending, and rising exports.
"Looking ahead, investment activity is expected to pick up, provided the lower interest rates are passed on, which should yield employment generation. Additionally, provided recent tax relief for the middle-income group boosts consumption further, we would see the continuing growth momentum in the coming quarters," MP Financial Advisory Services Founder and Managing Partner, Mahendra Patil, said.
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