Government spending, rural boom lift India’s GDP to 6.2% in Q3 FY25

India’s GDP growth accelerated in the third quarter of 2024-25 fiscal year (Q3), ending in the third december of 2024. This indicates 5.4% growth in the previous quarter (Q2 FY25).

The real GDP at the C3 FY25 is valued at 47.17 Rs, compared to Q3 FY24 44.44. The gross value (GVA) has also increased by 6.2% per year, while the nominal growth of GDP, the factors in inflation were 9.9%.

Growth growth is attributed to a rural demand for good monsoon, which raised the government’s expenses on infrastructure and revival in the central consumer sectors during the holiday season. However, 6.2% growth remains low than 8.6% registered in the same quarter of the previous year.

For the full financial year of 2024-25, the government now plans to grow by GDP by 6.5%, slightly higher than 6.4%. However, this would mean the lowest growth rate in four years.

The rural demand played a significant role in promoting GDP growth in the October-December region. Favorable Mongo led to improved agricultural products, and a large Kharif crop, which shows higher production, contributing to rural income growth. The growth of agriculture is expected to be up to 4.5% in Q3 FY25 compared to 0.4% of Q3 FY24.