India’s economic growth slowed to 6.2 per cent in Q3 FY25, down from 9.5 per cent a year ago Photo: X/@MahaKumbh_2025
India’s economic growth slowed to 6.2 per cent in Q3 FY25, down from 9.5 per cent a year ago Photo: X/@MahaKumbh_2025
Chief Economic Advisor V Anantha Nageswaran has expressed confidence that India’s GDP growth will reach 7.6 per cent in the fourth quarter, which is essential to achieve the estimated 6.5 per cent growth for the full financial year. Nageswaran attributed this growth to a strong rebound in government capital expenditure, “good exports,” and increased consumption driven by the six-week-long Maha Kumbh event which ended on February 26.
While addressing the media about the third-quarter GDP numbers, Nageswaran said Maha Kumbh saw huge sums of money being spent on food, accommodation, travel and other sectors. This is expected to have a sizeable impact on consumption expenditure in Q4, he added.
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The Maha Kumbh: Beyond Spirituality, An Economic Powerhouse
The Maha Kumbh, which saw over 63 crore devotees flocking to Prayagraj, Uttar Pradesh to take holy dip, provided a “significant” boost to consumption expenditure in the March quarter, Nageswaran said. However, he added, it is “difficult to put a number” to such incremental spending at this stage.
A 7.6 per cent growth forecast for the fourth quarter, therefore, isn’t an “unrealistic target”, he affirmed. He highlighted that the income tax relief announced in the Union budget 2025-26 would further stimulate consumption and will help improve the medium term economic prospects. He also said that the recent rate cuts and liquidity measures from the central bank would support credit growth.
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He also noted the positive impact of resilient rural demand and a recovery in urban consumption, despite an uncertain global outlook.
Further, he said that the central bank’s recent rate cuts and liquidity measures would support credit growth. The chief economic advisor also exuded confidence that India’s economy is on track to surpass the $4 trillion mark this fiscal year.
India’s Economy Grows 6.2 Per Cent In Q3 FY25
According to the data released by National Statistical Office (NSO) on Friday, February 28, India’s economic growth rate slowed to 6.2 per cent in the October-December 2024 period, down from 9.5 per cent in the same period last year. The deceleration was primarily attributed to weak performance in mining, manufacturing, and all other sectors, except agriculture.
India’s GDP growth stood at 6.7 per cent in the April-June 2024 period but saw a sharp decline to 5.4 per cent in the July-September 2024 period, sinking to a seven-quarter low.
The country’s real GDP for the financial year 2024-2025 is expected to touch Rs 187.95 lakh crore, according to the data released by the government. This is an increase from the revised GDP estimate of Rs 176.51 lakh crore for 2023-2024.