Long haul for growth: How GDP dynamics may shape up in the coming quarters

Looking at India's growth performance from the expenditure lens indicates a pickup in the private consumption expenditure to 6.9% YoY in Q3FY25 compared to 5.9% YoY in Q2FY25

There was little doubt that India’s gross domestic product (GDP) would see an improvement in Q3FY25 on the back of festive demand. Real GDP growth was at 6.2 per cent in Q3FY25, up from an upwardly revised 5.6 per cent in Q2FY25. Gross value added (GVA) was also at 6.2 per cent in Q3FY25, compared to 5.8 per cent in the previous quarter.

 

The production side breakdown of the growth structure indicates a pickup in the agricultural sector’s production while the manufacturing sector’s growth also picked up.

 

While top line growth for the non-financial sector has been muted, a reduction