India’s Q3 GDP Progress Developments
Context:
India’s actual GDP noticed a progress of 6.2% in Q3 FY 2024-25 (October-December 2024). The Q3 determine is best than Q2, which was solely 5.6%.
- Nevertheless, the Q3 progress fee was 0.2 share factors beneath RBI’s estimate.
- Apparently, it was 9.5% in Q3 of 2023-24.
Relevance:
GS-03 (Economic system)
What had been the important thing financial drivers?
- Authorities Spending: Elevated by 8.3%, up from 2.3% final yr.
- Non-public Consumption: Grew by 6.9%, greater than 5.7% in Q3 2023.
- Exports: Rose 10.4%, in comparison with 3% within the earlier yr.
- Imports: Declined 1.1%, probably as a consequence of rupee depreciation.
- Nevertheless, Gross Fastened Capital Formation (Funding Progress) slowed to five.7% from 9.3% in Q3 2023, regardless of elevated public spending.
Challenges and Future Projections
- To attain the 6.5% GDP goal for FY 2024-25, the financial system wants 7.6% progress in This fall, which specialists take into account formidable.
- The Chief Financial Adviser highlighted three essential elements for attaining this:
- Export Surge
- Increased Capital Expenditure (Capex) Progress
- Increase in Non-public Consumption as a consequence of occasions just like the Maha Kumbh Mela
Conclusion:
The financial outlook stays optimistic, however sustaining momentum will rely on coverage assist and exterior financial situations.
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