India’s Economy Likely Grew 7.3% in July–September Quarter
India’s economy is estimated to have grown 7.3 per cent year-on-year in the July–September 2025 quarter, according to economists surveyed ahead of the official GDP release. This marks a slight moderation from the previous quarter’s 7.8 per cent expansion. The rise is attributed mainly to stronger rural consumption driven by improved agricultural output and continued government capital expenditure.
Urban Demand and Private Investment Still Weak
While rural spending improved, economists noted that urban demand and private sector investment remained sluggish, creating an uneven growth pattern across the economy. Analysts also pointed out that a low GDP deflator, caused by easing inflation, has inflated the real GDP number by keeping the price-adjusted base lower than usual.
Nominal Growth Slows Despite Real GDP Uptick
Nominal GDP growth is expected to have slowed to about 8.3 per cent, indicating that the headline real GDP figure was partly supported by statistical effects rather than a broad-based economic surge. Sectors such as manufacturing and services continued to expand but showed signs of cooling momentum.
Outlook for Coming Quarters
Economists forecast further moderation in the next two quarters, with estimates suggesting 6.8 per cent growth for October–December and 6.3 per cent for January–March, unless private investment and urban consumption witness a sustained recovery.
