India’s GDP jumps to 6.2% in October-December, Centre pegs economy to expand at 6.5% in 2024-’25
The first advance estimates released in January had projected the gross domestic product growth to fall to 6.4% in the current fiscal year.
India’s gross domestic product grew at 6.2% in the October-December quarter, up from a seven-quarter low of 5.4% in the July-September period, according to the second advance estimates released by the National Statistics Office on Friday.
The economy had recorded 9.5% growth in the year-ago period.
As per the projection released by the Ministry of Statistics and Programme Implementation, the country’s economy is pegged to grow at a four-year low of 6.5% in the financial year 2024-’25.
The first advance estimates released in January had projected the gross domestic product growth to fall to 6.4% in the current fiscal year.
In the second estimates, the National Statistics Office stated that the construction sector is estimated to observe a growth rate of 8.6% in the financial year 2024-’25, followed by the financial, real estate and professional services’ sector (7.2%) and trade, hotels, transport, aommunication and services related to broadcasting sector (6.4%).
“Private Final Consumption Expenditure is expected to register a good growth of 7.6% during 2024-’25 as compared to 5.6% growth observed during 2023-’24,” stated the National Statistics Office.
On December 30, the Reserve Bank of India said that India’s economy was demonstrating “resilience and stability”, and projected GDP growth at 6.6% in 2024-’25.
The Economic Survey 2024-’25 tabled in Parliament on January 31 had stated that India would need to achieve sustained economic growth of close to 8% for at least a decade to achieve its goal of becoming a developed country by 2047.
It also said that to achieve growth of around 8%, the investment rate must rise to approximately 35% of the GDP, up from the current 31%.
To help boost household consumption, savings and investment, the Union government announced in its Budget on February 1 that there would be no income tax payable for income up to Rs 12 lakh under the new regime. The limit would be Rs 12.75 lakh for salaried taxpayers considering the standard deduction of Rs 75,000.
The Opposition had criticised the Budget proposals, calling them a “band-aid for bullet wounds”.
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