By: Mr. Vivek Rathi – National Director Research, Knight Frank India.

“India’s Q3 FY 2025 GDP growth of 6.2% signals a moderate recovery in economic momentum since the last announcement but remains a notable slowdown compared to the same period last year. While a 5.6% growth in the agriculture sector has contributed positively, a sharp decline in manufacturing growth from 14% to 3.5% has significantly weighed on overall expansion. Additionally, a moderation in the construction sector to 7% has further dampened year-on-year growth.

With Real GDP projected to grow at 6.5% for FY 2024-25—substantially lower than the exceptional 9.2% recorded in FY 2023-24—there is a need for measures to stimulate private consumption, expand capital investment avenues, and sustain economic momentum.

Among high-frequency indicators within the property sector, we have seen signs of moderation in growth in both credit offtake and sales, suggesting a plateauing at elevated levels. Policy interventions aimed at revitalizing demand across the economic spectrum, particularly in the affordable housing segment, will be crucial in regaining momentum.”