India’s economy in the third quarter (Q3) of FY 2024-25 is projected to expand with a real GDP growth rate of 6.2 per cent, according to the latest data from the Ministry of Statistics and Programme Implementation (MoSPI).
This is an increase from the GDP growth of 5.4 per cent in Q2 of FY25.
Real GDP (Gross Domestic Product at Constant Prices) measures the total value of goods and services produced in the economy, adjusted for inflation. It provides a clearer picture of economic progress by filtering out price fluctuations.
The nominal GDP, which represents the total economic output, including inflation, grew by 9.9 per cent for the quarter, the data showed on Friday.
While it reflects the actual value of transactions, it does not account for the effect of rising prices over time.
For the full fiscal year 2024-25, the Indian economy is expected to grow at 6.5 per cent in Real GDP terms, an upward revision from earlier estimates. Nominal GDP is projected to increase by 9.9 per cent, signaling continued economic expansion.
Sectoral Performance in FY25
The construction sector is expected to lead with an 8.6 per cent growth, reflecting increased infrastructure activity. The financial, real estate, and professional services sector is projected to expand by 7.2 per cent, while the trade, hotels, transport, communication, and broadcasting sector is estimated to grow at 6.4 per cent.
Private Final Consumption Expenditure (PFCE), which represents household spending, is forecasted to grow by 7.6 per cent, a notable improvement from the 5.6 per cent recorded in FY24.
