NEW DELHI – India’s economy expanded by 6.2% in the October-December quarter of 2024, driven by increased government expenditure and robust consumer spending, according to official data released on February 28. The growth rate, while slightly below analysts’ expectations of 6.3%, was an improvement over the previous quarter’s 5.6% expansion.
Strong rural demand and easing food prices helped support private consumer spending, which grew by 6.9% year-on-year, up from 5.9% in the prior quarter. Government spending also surged by 8.3% compared to a modest 3.8% increase in the previous three months.
Despite these positive trends, manufacturing growth remained subdued at 3.5%, reflecting ongoing challenges in the sector that contributes about 17% to the economy. Agricultural output saw a significant rise of 5.6%, buoyed by favorable rural demand and improved harvests.
India remains the world’s fastest-growing major economy but faces uncertainties related to global trade dynamics, including potential reciprocal tariffs from the U.S. under the Trump administration. Economists expect further rate cuts from the Reserve Bank of India as inflation continues to ease, supporting growth momentum in the upcoming quarters.