Tue Feb 18 08:25:33 UTC 2025: ## India’s GDP Growth Projected at 6.4% in December Quarter

**New Delhi, February 18, 2025** – India’s economy is projected to have grown by 6.4% in the December quarter (Q3 FY2025), according to the Investment Information and Credit Rating Agency (ICRA). This marks an improvement from the 5.4% growth in the previous quarter, which was a seven-quarter low. The uptick is attributed to increased government spending, both at the central and state levels, offsetting uneven consumer spending.

ICRA Chief Economist Aditi Nayar highlighted the significant increase in government capital and revenue expenditure as a key driver of growth, along with strong services exports, a rebound in merchandise exports, and a healthy kharif crop harvest. While some consumer sectors saw a boost during the festive season, urban consumer sentiment remained somewhat subdued.

Despite the positive Q3 figures, ICRA notes that the growth may still lag behind the initial estimates for Q1 FY2025. The National Statistical Office (NSO) will release its official Q3 growth estimates on February 28th, along with the second advance estimates of GDP for the entire fiscal year. The NSO’s initial estimate for the full year projected GDP growth at a four-year low of 6.4%, while the Reserve Bank of India (RBI) forecasts 6.6%.

The improved investment activity, reflected in increased capital and infrastructure goods output, cement production, engineering goods exports, and government capital expenditure, also contributed to the positive projection. Government capital expenditure saw a significant surge to a six-quarter high of 47.7% YoY growth in Q3, compared to 10.3% in Q2. While these positive factors are encouraging, the uneven nature of consumer spending remains a point of attention. International organizations, such as the UN and IMF, offer slightly differing projections for India’s overall economic growth in 2025.

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