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Below the Quote on India`s GPD Data October-December by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings

India’s economy grew by 6.2 % in October-December, up from 5.4 % in July-September, mainly due to a broad-based pick-up in economic activity.  On a year-on-year (YoY) basis, GDP growth slowed from 8.6%, while on a sequential (QoQ) basis, it rose from 5.4%. Growth of 6.2 % is seen in FY 26.  

‘Construction’ sector grew by 8.6%, followed by ‘Financial, Real Estate & Professional Services’ sector (7.2%) and ‘Trade, Hotels, Transport, Communication & Services related to Broadcasting’ sector (6.4%) during 2024-25. India’s private consumer spending in Q3 rose 6.9% YoY, up from 5.9% in Q2   because of improved rural consumption following a good monsoon, moderating food prices, and higher government spending by Centre & states) on capital and revenue expenditure, high growth in services exports, a turnaround in merchandise exports, healthy output of major kharif crops, etc.  Some consumer-focused sectors gained steam during the festive season. But urban consumer sentiment continued to be muted. Other sectors, such as mining and electricity improved after weather-related challenges in the previous quarter.

During Q2, the GDP growth had decelerated to its lowest level in seven quarters at 5.4 % because of slack urban demand and delayed government spending due to national elections. While the worst is over for India’s economic growth, global uncertainties and volatile energy prices remain key risks. India remains the fastest-growing major economy, but the growth falls short of expectations.

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