Growth picks up to 6.2% in Q3; FY25 projection now 6.5%

Consumer spending strengthens, agri shines; past data revised

- ASIT RANJAN MISHRA

India's economic growth accelerated to 6.2 percent in the December quarter of FY25, up from a revised 5.6 percent in the previous quarter, reversing two consecutive quarters of slowdown. However, significant revisions to past data have left economists perplexed.

Data released by the Ministry of Statistics and Programme Implementation (Mospi) on Friday showed the economy is expected to grow at 6.5 percent in FY25, marginally higher than the 6.4 percent projected in January.

The average GDP growth for the first three quarters of FY25 stands at 6.1 percent, implying that fourth-quarter growth is assumed at 7.6 percent, a target economists say is challenging but achievable.

Alongside the FY25 growth projection, Mospi revised growth estimates for FY23 to 7.6 per cent from 7 per cent and for FY24 to 9.2 per cent from 8.2 per cent.

Nominal GDP for FY25 is projected at 331 trillion, assuming a growth rate of 9.9 per cent, slightly higher than the 9.7 per cent estimated in January's first advance projections. This is expected to ease the government's path to achieving the revised fiscal deficit target of 4.8 per cent of GDP for FY25.