Second advance estimates of India’s real Gross Domestic Product (GDP) for FY 2024-25 released by the National Statistics Office (NSO) have revised the country’s annual GDP marginally upward to 6.5%. The first advance estimates for GDP, released in January 2025, had projected an annual real GDP growth of 6.4%.

The ‘Construction’ sector is estimated to observe a growth rate of 8.6%, followed by ‘Financial, Real Estate & Professional Services’ sector (7.2%) and ‘Trade, Hotels, Transport, Communication & Services related to Broadcasting’ sector (6.4%) during 2024-25, a release issued by Ministry of Statistics and Programme Implementation (MoSPI) said.

Private Final Consumption Expenditure (PFCE) is expected to register a good growth of 7.6% during 2024-25 as compared to 5.6% growth observed during 2023-24, the release further stated.

Quarterly real GDP estimates for Q3 (October-December 2024) have been pegged at 6.2% while Q2 real GDP numbers have been revised upward to 5.6% from the earlier 5.4%. 

Expressing confidence that the country was set to cross USD 4 trillion in nominal GDP by FY25 itself, Chief Economic Adviser V Anantha Nageswaran reiterated that India remained the fastest growing major economy during Q3. He has opined that the projected Q4 real GDP target of 7.6% is not unrealistic.

In the same announcement, NSO also shared first revised estimates of real GDP for FY 2023-24 and final estimates for FY 2022-23. While FY 2023-24 numbers are at a substantial high of 9.2% - the highest in the previous 12 years except for FY 2021-22, FY 2022-23 numbers were at 7.6%.

For FY 2022-23, growth has been largely attributed to double digit leaps across Trade, Hotels, Transport, Communication & Services related to Broadcasting’ (12.3%), ‘Financial, Real Estate & Professional Services’ (10.8%) and ‘Electricity, Gas, Water Supply & Other Utility Services’ (10.8%) sectors. FY 2023-24 estimates credit double digit growth across

‘Manufacturing’ (12.3%), ‘Construction’ (10.4%) and ‘Financial, Real Estate & Professional Services’ (10.3%) sectors.

The NSO, a part of the Ministry of Statistics and Programme Implementation (MoSPI), uses the benchmark indicator method for making advance GDP estimations. Estimates available for the previous financial year are extrapolated using relevant indicators reflecting the performance of sectors.

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