India GDP Grows Less than Expected in September Quarter

The Indian GDP expanded 6.2% from the previous year in the December quarter of 2024, picking up from the upwardly revised 5.6% expansion in the earlier period but slightly below market expectations of a 6.3% growth rate.

The rate consolidated the softening in India’s GDP growth, which was by far the fastest growing economy in the G20 up until last year, following a prolonged period of high energy and food prices, in addition to restrictive monetary policy and tight liquidity conditions by the RBI.

Growth increased for private consumption expenditure (6.9% vs 5.9% in September quarter) and public expenditures (8.3% vs 3.8%), but slowed for gross fixed capital formation (5.7% vs 5.8%).

In the meantime, net external demand contributed positively to the GDP as exports soared by 10.4% and imports softened by 1.1%.