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Indian Economy Likely Grew By 7.3 Percent in the July–September Quarter: Report
India’s economic momentum remains strong as a new report suggests the GDP likely expanded by 7.3 percent during the July–September quarter (Q2 FY25). Despite global economic uncertainties, India continues to outperform major emerging markets, driven by robust domestic demand, government-led capital expenditure, and resilient services and manufacturing growth.
If confirmed, this performance will reinforce India’s position as the fastest-growing major economy in the world.
Key Factors Driving the 7.3 Percent Growth
1. Strong Domestic Consumption
Urban spending and festive-season purchasing pushed demand higher, especially in segments like consumer goods, retail, and services.
2. Robust Manufacturing Output
Manufacturing saw improved capacity utilisation, better supply chain conditions, and strong growth in sectors such as automobiles, electronics, and chemicals.
3. Government Capital Expenditure
Public infrastructure spending remained a major contributor. Increased investment in roads, railways, digital infrastructure, and energy projects boosted overall GDP.
4. Growth in Services Sector
Financial services, IT, hospitality, and travel continued to show strong expansion, supported by rising consumer confidence and improved market activity.
5. Stable Inflation and Policy Support
Moderating inflation and RBI’s stable interest-rate outlook supported both consumer sentiment and business investment.
Economic Experts’ Outlook for the Coming Quarters
Economists expect India’s growth trajectory to remain strong for the rest of FY25, though external risks such as global slowdown, geopolitical tensions, and volatility in energy prices could create short-term pressure.
If structural reforms, private investment, and macroeconomic stability continue, India is on track for 7 percent-plus annual GDP growth, positioning it firmly as a key global economic driver.
What This Means for India’s Long-Term Economic Goals
Strengthened investor confidence
Increased Foreign Direct Investment (FDI) interest
Better fiscal stability
Expansion of India's global economic influence
Momentum toward becoming a five-trillion-dollar economy
The sustained growth in Q2 will also support job creation and industrial expansion as India accelerates its digital and manufacturing transformation.
FAQs
1. What is India’s projected GDP growth for the July–September quarter?
The report estimates India’s GDP expanded by 7.3 percent in Q2 FY25.
2. What contributed the most to the GDP growth?
Manufacturing, services, and government capital expenditure were major growth drivers.
3. Is India still the fastest-growing major economy?
Yes, India continues to lead globally with growth exceeding most major economies.
4. How does inflation impact GDP growth?
Moderate inflation supports purchasing power and industrial activity, aiding economic stability.
5. What is the outlook for the Indian economy for FY25?
Economists expect growth to remain above 7 percent, supported by strong domestic demand and investment activity.
Published on : 25 th November
Published by : Reddy kumar
Credit: Written by Vizzve Finance News Desk
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