India’s economy expanded by 6.2 per cent in October-December, picking up on increased government and consumer spending, official data showed yesterday, and the government said it expected a further acceleration in the current quarter.
A stronger rural economy also bolstered the world’s fifth-largest economy in the final quarter of 2024, but manufacturing growth remained subdued and the overall rise in GDP was well below peak quarterly growth rates seen in the three years after the pandemic.
“GDP figures show that India’s economy remained fairly soft by its own standards at the end of last year. But with policy now decisively turning more supportive, economic growth should pick up further over the coming quarters,” Capital Economics’ Harry Chambers said.
India is still the world’s fastest growing major economy, but it also faces uncertainties over its trade with the United States and the Trump administration’s plans to impose reciprocal tariffs.
Growth in gross domestic product in October-December was slightly lower than the 6.3pc expansion projected by analysts in a Reuters poll, and the central bank’s estimate of 6.8pc. The economy grew 5.6pc in the previous quarter.
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