India’s economic growth has slowed to 6.2% in the third quarter of 2024-25, marking a significant drop from 9.5% in the same period of the previous financial year.

The decline has been largely attributed to weaknesses in the manufacturing and mining sectors, according to data released by the National Statistical Office (NSO) on Friday (February 28).

Despite the slowdown, the NSO’s second advance estimate projects that real GDP growth for the full fiscal year 2024-25 will stand at 6.5%. Meanwhile, nominal GDP, which reflects the economy at current prices, is expected to rise by 9.9%.

The NSO estimates that real GDP in 2024-25 will reach Rs 187.95 lakh crore, up from Rs 176.51 lakh crore in 2023-24. Nominal GDP is projected to touch Rs 331.03 lakh crore in 2024-25, compared to Rs 301.23 lakh crore in the previous financial year.

Per capita net national income at current prices is expected to increase to Rs 1,88,892 in 2023-24 from Rs 1,69,145 in 2022-23.

Private final consumption expenditure (PFCE), a key indicator of household spending, is estimated to grow by 7.6% in 2024-25, improving from the 5.6% growth observed in the previous fiscal year.

Among key sectors, construction is expected to record the highest growth at 8.6% in 2024-25.

The financial, real estate, and professional services sector is projected to grow at 7.2%, while trade, hotels, transport, communication, and broadcasting services are likely to expand by 6.4%.

Meanwhile, the NSO has revised its GDP growth estimate for 2023-24 to 9.2%, up from its earlier projection of 8.2%.

The latest data indicates a cooling of economic momentum, with industrial slowdowns weighing on overall growth even as the services sector continues to drive expansion.