The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 28, 2025
India’s economic growth gained momentum in the third quarter of 2024-25, with GDP expanding at 6.2 per cent, up from a revised 5.6 per cent in the previous quarter. The acceleration was driven by a surge in rural consumption, supported by a favorable monsoon, and a sharp rise in government spending on infrastructure projects, according to data released by the Ministry of Statistics on Friday.
For the full financial year 2024-25 (FY25), GDP growth is now projected at 6.5 per cent, while the economic growth for 2023-24 has been revised to 8.2 per cent, marking a 12-year high. The revised estimates indicate that real GDP grew by 9.2 per cent in 2023-24, making it the highest expansion in over a decade, barring the post-pandemic rebound of 2021-22.
Sector-wise, the construction industry is expected to record an impressive 8.6 per cent growth in 2024-25, followed by financial, real estate, and professional services at 7.2 per cent. The trade, hotels, transport, communication, and broadcasting-related services sector is projected to expand at 6.4 per cent.
Private Final Consumption Expenditure (PFCE), a key indicator of household spending, is expected to register a healthy growth rate of 7.6 per cent in 2024-25, significantly higher than the 5.6 per cent growth recorded in the previous fiscal year.
The revised estimates for 2023-24 highlight strong contributions from the manufacturing sector, which witnessed double-digit growth at 12.3 per cent, while construction and financial services expanded by 10.4 per cent and 10.3 per cent, respectively.
The latest data reaffirms India’s position as one of the fastest-growing major economies, driven by strong domestic demand, robust infrastructure development, and continued policy support.
