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ICRA Projects India's GDP Growth to Reach 6.4% in Q3 FY2025.

Economy Business | Dated: 21 Feb 2025

In February 2025, Gurgaon, Haryana-based ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited), one of the most experienced Credit Rating Agencies in India, projected India's Gross Domestic Product (GDP) growth to rise to 6.4% in the October-December 2024 Quarter (Q3), up from 5.4% in Q2 of the Financial Year (FY) 2025, supported by increased government spending.

🎯 Key Highlights:

  • - However, the growth rate is projected to remain below Q1 FY2025 levels, with GDP lagging behind Gross Value Added (GVA) for the third consecutive quarter.
  • - The GVA growth is estimated to record a broad-based improvement to 6.6% in Q3 from 5.6% in Q2 of FY2025, driven by the Industrial: 6.2% (up from 3.6%); Services: 7.7% (up from 7.1%); and Agricultural: 4.0% (up from 3.5%) sectors.

💡 Other Important Facts:

  • (i) The Government of India's (GOI) Capital Expenditure (CapEx) rose 47.7% (from 10.3%) YoY in Q3 FY2025, the highest in 6 quarters.
  • (ii) Aggregate capital outlay and net lending of 24 state governments (excluding Arunachal Pradesh, Bihar, Goa, and Manipur) grew 9.9% Year-over-Year (YoY), up from 7.0% in Q2.
  • (iii) Service exports hit an all-time high of USD 36.9 billion in December 2024, with Q3 exports rising 17.5% YoY, while merchandise exports rebounded with a YoY growth of 3.3%, reversing the 4.3% contraction in Q2.

📚 Test Your Knowledge:

Which organization recently projected India's GDP growth to reach 6.4% in Q3 FY2025?

Correct Answer: ICRA

🚀 Quick Recap: