01 Mar 2025 | 12:51:32 AM IST
Synopsis
India GDP Q3 FY25 Data Highlights: India’s economic growth accelerated to 6.2% in the third quarter of FY25, up from 5.4% in the previous quarter, driven by improved rural consumption due to a favorable monsoon and increased government expenditure. India’s April-January fiscal deficit at Rs 11.70 lakh crore, widens on-year to 74.5% of FY25 revised aim.
India GDP Q3 FY25 Data Highlights: Chief Economic Advisor V Anantha Nageswaran said on Friday that the Maha Kumbh mela Maha Kumbh will help achieve 6.5% GDP for FY25. He further mentioned that though it is ard to put a number to it but Kumbh mela will offer a significant boost to consumption expenditure in the March quarter. Meanwhile, he also said that India’s economy must accelerate to 7.6% in the
Highlights:
- Moderation in investment share, corporate caution amid tariff risks, says Crisil
- ICRA’s Aditi Nayar on GDP data: Revisions suggest 7.6% Q4 growth, but global uncertainties may dampen outlook
- India’s Q3 FY2025 GDP growth improves to 6.2%, but falls short of 6.4% forecast, says ICRA
- CEA: RBI’s CRR and repo rate cut are expected to support liquidity and credit growth
- India’s forex reserves up $4.7 billion at $640.47 billion as of February 21
- The production of Cement, Refinery Products, Coal, Steel, Fertilizers and Electricity recorded positive growth in January, 2025.
- The combined Index of Eight Core Industries increased by 4.6per cent (provisional) in January, 2025 as compared to the Index in January, 2024.
- US tariff concerns may impact India’s exports by up to $7 billion in FY26, says Ind-Ra
- The growth rate of Real GDP for Q2 of financial year 2024-25 has been revised upward to 5.6%.
- Real GDP Growth Rate of 9.2% for 2023-24 is the highest in the previous 12 years except for 2021-22.
- RBI adds $10 billion via currency swap to ease cash srunch
09:42:58 PM IST, 28 Feb 2025
India Q3 GDP FY25 Live: The Q3 GDP growth drivers
- Broad-based growth in Q3: Driven by both domestic demand and exports, signaling a robust economic recovery.
- Industrial activity gains momentum: Services sector remains resilient, with significant improvement in urban demand.
- FMCG sales growth: Nearly doubled to 5% in Q3 from 2.5% in the previous quarter, reflecting stronger consumer sentiment.
- Rural demand: Continues to show resilience and will support overall growth.
- Government spending: Increased by 8.3% in Q3, up from a modest 3.8% in the previous quarter.
- Private sector investment: Needs to ramp up, with no uncertainty in Indian demand.
- Income-tax cut: Expected to help boost consumption.
- Infrastructure output: Grew 4.6% year-on-year in January, driven by cement and refined petroleum products.
- Infrastructure output growth: Revised to 4.8% in December, compared to the initial estimate of 4%.
- Infrastructure output for April-January: Grew by 4.4%, slower than last year’s 7.8% growth.
India’s Q3 GDP picks up pace: What the latest data reveals
After a sudden slump in the second quarter of the financial year, India’s economy has bounced back in the third quarter of October to December. The Gross Domestic Product (GDP) grew by 6.2% in October-December. It saw a sharp slowdown in the July to September quarter, with GDP growth slipping to 5.6%, the slowest pace in seven quarters. Economists blamed the slowdown on weak urban demand and a delay in government spending due to national elections last year. Yet, the Q3 GDP growth is marginally below expectations. The Reserve Bank of India (RBI) had projected GDP growth of 6.8% while an ET Poll and a Reuters survey had both suggested growth rate of 6.3% in the third quarter. The Q3 GDP growth is also lower than the 8.6% in the same quarter last financial year. India still remains the fastest-growing major economy in the world.
In its latest monetary policy, the RBI had cut India’s growth forecast for 2024-25 to 6.6 per cent from 7.2 per cent. The government now estimates the GDP to grow by 6.5% in 2024-25. India’s economy must accelerate to 7.6% in the fourth quarter to reach a full-year growth target of 6.5%, said Chief Economic Advisor V. Anantha Nageswaran on Friday. Is the worst behind for Indian economy?
08:28:57 PM IST, 28 Feb 2025
ICRA’s Rahul Agrawal on core sector growth: Slight easing in Jan 2025, cement output surges to 15-month high
The core sector growth eased slightly to 4.6% in January 2025 from 4.8% in December 2024, dampened by a slower growth in electricity generation and coal output, even as the latter was much better than expected, given the decline in Coal India Limited’s output in the month. Additionally, the growth in steel output also slowed down sharply, while crude oil output reverted to contraction after witnessing a mild expansion in December 2024. Among the other four indicators that witnessed an uptick in their growth rates in January 2025 vis-à-vis December 2024, cement output saw a particularly sharp surge in growth to a 15-month high of 14.5% in the month. Given these trends, we expect the IIP growth in January 2025 to remain largely similar to the 3.2% seen in December 2024,” he said.
India’s Q3 FY2025 GDP growth improves to 6.2%, but falls short of 6.4% forecast, says ICRA
Notwithstanding the sequential improvement in India’s GDP growth to 6.2% in Q3 FY2025 from the revised 5.6% in Q2 FY2025, the pace trailed our forecast of 6.4%. The sequential uptick was led by a pickup in the growth of private and government consumption and a narrower drag on account of net exports, even as that in gross fixed capital formation eased marginally between these quarters,” said ICRA’s Chief Economist, Aditi Nayar.
“GVA growth also accelerated modestly to 6.2% in Q3 from 5.8% in Q2, while printing slightly lower than our projection of 6.6%, led by the manufacturing, mining, construction and PADOS segments, even as all the other sectors witnessed a better-than-expected growth in the quarter. However, these numbers must be seen in the context of the sharp upward revisions in the quarterly growth prints for FY2024,” she said.
AI in healthcare likely to contribute $30 bn to India’s GDP by 2025: Report
Artificial Intelligence (AI) in healthcare is projected to contribute USD 25-30 billion to India’s GDP by 2025, enhancing accessibility, diagnostics, and treatment outcomes, according to a report by Deloitte. Government-backed initiatives like the IndiaAI Mission and the Digital Personal Data Protection Act, 2023, are setting the stage for a digitally empowered healthcare ecosystem, ensuring responsible AI integration and enhanced data security, it noted.