India's economic growth rate decelerated to 6.2 per cent in the October-December quarter this fiscal, mainly due to poor performance by mining, manufacturing and all other sectors, with the exception of agriculture.
However, on a sequential basis, the economic growth rate in the third quarter showed improvement over 5.6 per cent recorded in the second quarter.
The GDP (gross domestic product) growth was 9.5 per cent in the October-December 2023 quarter, according to the data released by the National Statistical Office (NSO) on Friday.
It also released the second advance estimate for the current fiscal and pegged the economic growth at 6.5 per cent against 6.4 per cent estimated in the first advance estimate released in January.
The manufacturing sector's output growth, as per the gross value added (GVA), in the third quarter dipped to 3.5 per cent from 14 per cent in the year-ago period.
Mining and quarrying production growth slowed to 1.4 per cent in the third quarter from 4.7 per cent a year ago.
The construction sector growth too slipped to 7 per cent from 10 per cent a year ago.
However, the output of the farm sector increased by an impressive 5.6 per cent during the quarter compared to a growth of 1.5 per cent in the year-ago period.
The national accounts data showed that the electricity, gas, water supply, and other utility services segment grew 5.1 per cent in the third quarter against 10.1 per cent a year earlier.
The GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 6.7 per cent during the third quarter against 8 per cent.
Financial, real estate and professional services grew by 7.2 per cent in the third quarter over 8.4 per cent earlier.
Public administration, defence and other services posted 8.8 per cent growth, marginally up from 8.4 per cent in the third quarter of the last fiscal.
"Real GDP or GDP at Constant Prices is estimated to attain a level of Rs 187.95 lakh crore in the financial year 2024-25, against the First Revised Estimate of GDP for the year 2023-24 of Rs 176.51 lakh crore.
"The growth rate in Real GDP during 2024-25 is estimated at 6.5 per cent as compared to 9.2 per cent in 2023-24," the NSO statement said.
According to the statement, nominal GDP or GDP at Current Prices is estimated to attain a level of Rs 331.03 lakh crore in 2024-25 against Rs 301.23 lakh crore in 2023-24, showing a growth rate of 9.9 per cent.
The real GDP or GDP at Constant Prices in Q3 of FY 2024-25 is estimated at Rs 47.17 lakh crore over Rs 44.44 lakh crore in Q3 of FY 2023-24, showing a growth rate of 6.2 per cent, it added.
The nominal GDP or GDP at Current Prices in Q3 of FY 2024-25 is estimated at Rs 84.74 lakh crore against Rs 77.10 lakh crore in Q3 of FY 2023-24, registering a growth rate of 9.9 per cent.
The NSO revised upwards the GDP growth for 2023-24 to 9.2 per cent from 8.2 per cent estimated earlier.
"Real GDP or GDP at constant (2011-12) prices for the years 2023-24 and 2022-23 stands at Rs 176.51 lakh crore and Rs 161.65 lakh crore, respectively, showing a growth of 9.2 per cent during 2023-24 compared to a growth of 7.6 per cent during 2022-23," it said.
Per Capita Income i.e. Per Capita Net National Income at current prices is estimated at Rs 169,145 and Rs 188,892 respectively for 2022-23 and 2023-24, it noted.
The NSO has also revised GDP estimates for the first and second quarters of this fiscal to 6.5 and 5.6 per cent from 6.7 per cent and 5.4 per cent, respectively.
The economy has expanded 6.1 per cent in April-December 2024 down from 9.5 per cent a year ago.
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