According to official figures released on Friday, India’s GDP grew 6.2% in October through December, driven by higher consumer and government spending. The administration stated that it anticipated a further acceleration in the current quarter.
Although manufacturing growth remained muted and the overall GDP growth was much below the peak quarterly growth rates observed in the three years following the pandemic, a stronger rural economy also supported the world’s fifth-largest economy in the last quarter of 2024.
India continues to be the major economy with the greatest growth rate in the world. However, it still confronts challenges related to trade with the United States and the Trump administration’s intentions to apply reciprocal tariffs.
The October-December gross domestic product growth was just below the central bank’s projection of 6.8% and the 6.3% expansion predicted by economists in a Reuters poll. The prior quarter had a 5.6% growth in the economy.
In contrast to a revised 5.8% expansion in the prior quarter, the gross value added (GVA), a gauge of economic activity considered a more stable indicator of growth, increased 6.2% in October through December. The government has increased its GDP growth projection for the entire year to 6.5%, somewhat better than its original 6.4% estimate but lower than the revised growth rate of 9.2% for 2023–2024.
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