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GDP growth rose to 6.2% Oct-Dec on better mfg, farm sector show
This story was originally published at 17:34 IST on 28 February 2025
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--India Oct-Dec GDP growth at 6.2%
--India Oct-Dec GDP growth 6.2% vs 9.5% year ago
--Govt: India Oct-Dec GVA growth 6.2% vs 8.0% year ago
--India Oct-Dec agriculture sector growth 5.6% vs 1.5% year ago
--India Oct-Dec mining sector growth 1.4% vs 4.7% year ago
--India Oct-Dec manufacturing sector growth 3.5% vs 14.0% year ago
--India Oct-Dec construction sector growth 7.0% vs 10.1% year ago
--India Oct-Dec industry growth 4.5% vs 11.8% year ago
--India Oct-Dec services sector growth 7.4% vs 8.3% year ago
--India Oct-Dec nominal GDP growth 9.9% vs 12.9% year ago
--India Apr-Jun GDP growth revised to 6.5% vs 6.7% earlier
--India Jul-Sept GDP growth revised to 5.6% vs 5.4% earlier
--India Apr-Dec GDP growth 6.1% vs 9.5% year ago
--India Apr-Dec GVA growth 6.2% vs 9.0% year ago
--India Apr-Dec nominal GDP growth 9.3% vs 12.0% year ago
--India Oct-Dec private consumption growth 6.9% vs 5.7% year ago
--India Oct-Dec gross fixed capital formation growth 5.7% vs 9.3% year ago
--India Oct-Dec govt consumption expenditure growth 8.3% vs 2.3% year ago
NEW DELHI - India's GDP growth rose to 6.2% in the December quarter from 5.6% in the September quarter on the back of a better performance by the manufacturing and agriculture sectors, data released by the statistics ministry Friday showed. The Indian economy had grown 9.5% a year ago.
The GDP print was slightly below expectations. According to an Informist poll, GDP growth was seen rising to 6.3% in Oct-Dec from 5.6% in Jul-Sept.
The government lowered the GDP growth estimate for Apr-Jun to 6.5%, from 6.7% earlier, while the Jul-Sept print was raised to 5.6%, from 5.4% earlier. The second advance estimate of GDP for the financial year 2024-25 (Apr-Mar), released with the Oct-Dec data, has projected the Indian economy to grow 6.5% in FY25. The first advance estimate released in January had pegged the FY25 GDP growth at 6.4%.
Along with the headline print, the gross value added growth, which economists consider a more reliable indicator of economic activity than GDP, rose to 6.2% in Oct-Dec from 5.8% in Jul-Sept and 8.0% a year ago.
The manufacturing sector grew 3.5% in Oct-Dec compared to 2.1% in Jul-Sept, while the farm sector expanded 5.6% in the last quarter of 2024 against 4.1% growth in Jul-Sept. The mining and electricity sectors also expanded at a quicker pace in Oct-Dec compared to Jul-Sept. The construction sector, however, grew 7.0% in the December quarter, slower than the 8.7% growth seen in Jul-Sept.
Industry as a whole expanded by 4.5% in Oct-Dec compared with 3.8% a quarter ago. The services sector grew 7.4% in Oct-Dec, quicker than 7.2% in Jul-Sept.
Growth in Oct-Dec was supported by improved consumption demand with private final consumption expenditure expanding 6.9%, compared to 5.9% in the previous quarter. Government consumption also picked up in Oct-Dec, rising 8.3% during the quarter against 3.8% in Jul-Sept.
The Indian economy grew 6.1% in Apr-Dec, slower than 9.5% a year ago. With FY25 GDP growth now seen at 6.5%, the implied growth for Jan-Mar is 7.6%, much higher than economists' expectations. Reserve Bank of India staff earlier this month had projected Jan-Mar GDP growth at 6.6%. Nominal GDP growth during Apr-Dec was 9.3%, while it is estimated to be 9.9% in FY25.
The rise in growth in Oct-Dec and the upward revision of the FY25 growth print would come as positives for the RBI, which earlier this month lowered the repo rate for the first time in nearly five years. Having lowered the repo rate by 25 basis points to 6.25% in February, the RBI's Monetary Policy Committee is expected to cut interest rates by another 25 bps in April.
"GDP figures for Q4 2024 show that India's economy remained fairly soft by its own standards at the end of last year. But with policy now decisively turning more supportive, economic growth should pick up further over the coming quarters," Harry Chambers, assistant economist at Capital Economics, said in a note.
The following table shows quarterly growth in gross value added at basic prices and GDP for Oct-Dec and previous quarters (in %):
| Sector | 2024-25 | ||
| Oct-Dec | Jul-Sept | Apr-Jun | |
| Agriculture | 5.6% | 4.1% | 1.7% |
| Industry | 4.5% | 3.8% | 8.4% |
| Mining | 1.4% | (-)0.3% | 6.8% |
| Manufacturing | 3.5% | 2.1% | 7.5% |
| Power and gas | 5.1% | 3.0% | 10.2% |
| Construction | 7.0% | 8.7% | 10.1% |
| Services | 7.4% | 7.2% | 6.8% |
| Trade, hotels | 6.7% | 6.1% | 5.4% |
| Financial services | 7.2% | 7.2% | 6.6% |
| Other services | 8.8% | 8.8% | 9.0% |
| GVA | 6.2% | 5.8% | 6.5% |
| GDP | 6.2% | 5.6% | 6.5% |
End
Reported by Shubham Rana
Edited by Rajeev Pai
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