India's Economic Growth: A Mixed Outlook Amid Sector Slowdowns

India's economic growth slowed to 6.2% in the third quarter of the fiscal year, with declines in sectors such as manufacturing and mining. However, agriculture showed significant growth. The National Statistical Office revised GDP forecasts, indicating a gradual improvement in growth for 2024-25.

India's economic growth rate decelerated to 6.2% in the October-December quarter of this fiscal year, driven predominantly by underperformance in mining, manufacturing, and other sectors, except for agriculture which showed impressive growth, according to data from the National Statistical Office (NSO).

Despite the slowdown, economic growth in the third quarter showed improvement over the previous quarter, rising from 5.6% to 6.2%. The NSO has adjusted its GDP outlook, now projecting a 6.5% growth for the fiscal year 2024-25, compared to the earlier forecast of 9.2% for 2023-24.

The manufacturing sector's growth dropped significantly to 3.5% from 14% a year ago, while mining and quarrying growth also slowed. In contrast, agricultural output saw a significant rise, which helped offset some of the economic deceleration.