India’s GDP growth is expected to pick up in the third quarter of FY25 (October-December 2024), driven by improving economic indicators, increased festive demand, and robust activity in key sectors, according to a report by ICRA.

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• GDP growth in Q3 FY25 projected to be faster than the first half of FY25.
• Growth fueled by festive demand, higher vehicle registrations, and increased electricity consumption.
• Vehicle registrations surged 32.4% YoY in October 2024, recovering from an 8.7% contraction in September.
• Domestic air passenger traffic grew 9.6% YoY, while petrol consumption rose to 8.7% from 3% in September.
• Two-wheeler production increased 13.4%, and rail freight improved to 1.5% from a 0.7% decline.
• Diesel consumption saw marginal growth (0.1%) after contracting 1.9% in September.
• Non-oil exports grew 25.6% YoY in October, led by electronics, engineering goods, chemicals, and garments.
• ICRA’s Business Activity Monitor recorded 10.1% YoY growth in October, the highest in eight months.
• Report reflects economic resilience and reinforces expectations of robust GDP growth in the coming months.