India’s GDP Growth Pegged at 6.5% for FY25

India’s economic growth is becoming more balanced, with private consumption’s share in GDP rising in fiscal 2025, according to a Crisil report. The second advanced estimate has been revised marginally by 10 basis points to 6.5%, aligning closer to the pre-pandemic decade’s average growth of 6.6%.  

Crisil’s Chief Economist Dharmakirti Joshi highlighted that this comes after a significant 100-bps upward revision in the previous year’s growth to 9.2%. He projected a 6.5% GDP growth in the next fiscal, supported by normal monsoons, lower food inflation, and anticipated rate cuts of 75-100 basis points.  

While public and household investments were the fastest-growing components in fiscal 2024, corporate investments remain sluggish due to financial caution and concerns over tariff wars, particularly regarding potential dumping from China.  

Joshi warned of evolving risks from ongoing tariff actions, which could create a downside bias to Crisil’s forecasts.  

India’s GDP growth accelerated to 6.2% in Q3 (October-December) of 2024-25, up from a revised 5.6% in the previous quarter. The overall growth for 2024-25 is now estimated at 6.5%, while the 2023-24 growth has been revised to 8.2%, marking a 12-year high.  

Meanwhile, India’s fiscal deficit for the first 10 months of the current financial year (April-January) stood at ₹11.70 lakh crore, accounting for 74.5% of the annual estimate.

Also Read: India’s Q3 GDP Growth Estimated at 6.2-6.3%, Driven by Strong Demand: SBI Report