Growth Performance
Q3 FY25 GDP Growth: 6.2% (an increase from the 5.6% growth rate in Q2).
In Comparison to Q3 FY24: A much slower rate than last year’s 9.5%.
RBI Estimate: Short by 0.2 percentage points.
Key Drivers of Growth
- Government Consumption: Up by 8.3% (2.3% last year).
- Private Consumption: Grew by 6.9% (5.7% in Q3 FY24).
- Export: A whopping 10.4% growth (compared to just 3% last year).
- Macroeconomic Indicators
- Increased GST Collections
- Increased Public Spending
- Increase in Electricity Generation
- Recovery in Exports
Weaknesses & Challenges
- Investment Slowdown: Gross Fixed Capital Formation (GFCF) growth at 5.7%, down from 9.3% in Q3 FY24.
- Import Declines: Fell 1.1%, partly due to rupee depreciation.
Growth momentum is likely to sustain on the backs of consumption and exports. Investment recovery is still a matter of concern. Global uncertainty and currency volatility may interrupt future performance.
