February 26, New Delhi According to analysts on Wednesday, India’s GDP growth in Q3 FY25 is anticipated to have an upward tendency and be between 6.3% and 6.4%, mainly due to more government expenditure and better household consumption over the holiday season.

Compared to the average of the previous two quarters, which was somewhat subdued owing to general elections, government capital spending increased by around 30% to Rs 2.7 lakh crore.

The goal of this increase was to spur economic development in the face of unequal trends in family spending. With the help of demand from the holiday season, private final consumption expenditure (PFCE), which accounts for 58% of GDP, is predicted to increase to 6.4% in Q3 after a moderate 5.4% in Q2, according to Mahendra Patil, Founder and Managing Partner of MP Financial Advisory Services.

Rural consumption benefited from the continued robust agricultural production, which was bolstered by favorable monsoons and increased Kharif crop yields.

In Q3 FY25, the services sector benefited from increased government capital investment, improved agri-produce, and increased consumption (caused by the holiday season). In addition, he said that services exports had shown an upward tendency in Q3 FY25.

According to SBI experts, India’s GDP is expected to expand by 6.2% to 6.3% in the third quarter (October–December) of 2024–2025 due to strong demand, Capex trends, and an increase in EBIDTA and corporate GVA reported by India Inc.

A Bank of Baroda analysis projects that India’s GDP would expand 6.6% between October and December, which is still strong thanks to support from services, government expenditure, and agriculture.

The paper said that although the banking sector and rural demand exhibit resilience, the government’s increased capital expenditure (capex) is a key factor in economic stability.

According to experts, the Q3 FY25 growth outlook is still positive due in large part to public spending, favorable monsoon conditions that increase the output of major Kharif crops, the services sector’s strong performance, and services export, even though long-term GDP sustainability depends on income growth, job creation, and private sector investment.