Economy & BudgetImportant2025-02-28

NSO Releases Q3 FY25 GDP and Advance Estimates

In News

What Happened

On February 28, 2025, the National Statistics Office (NSO) released India's macroeconomic data, including the Second Advance Estimates for the fiscal year. The real GDP growth for the third quarter (October-December) of FY25 was recorded at 6.2%. Furthermore, the full-year real GDP growth projection for 2024-25 was officially revised upward to 6.5%.

Why It Matters

This data highlights a healthy economic recovery from a sluggish second quarter, driven by a strong rebound in rural demand, private consumption, and government capital expenditure. It reinforces India's macroeconomic stability and its position as one of the fastest-growing major economies globally.

Background

History & Context

The NSO, functioning under the Ministry of Statistics and Programme Implementation (MoSPI), computes national income aggregates using the 2011-12 base year methodology introduced in 2015. It follows a strict release calendar, publishing First Advance Estimates in January and Second Advance Estimates in February, followed by multiple revisions in subsequent years. Earlier in the fiscal year, Q2 FY25 experienced a significant economic slowdown, initially dropping to a multi-quarter low of 5.4%.

What Changed

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Full-Year FY25 Real GDP Projection: BEFORE it was projected at 6.4% in the First Advance Estimate; NOW it has been revised upward to 6.5% in the Second Advance Estimate.
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Q2 FY25 Real GDP Growth: BEFORE it was reported as a seven-quarter low of 5.4%; NOW it has been officially revised upward to 5.6%.
▶
FY24 Real GDP Growth: BEFORE it was estimated at 8.2%; NOW it has been significantly revised upward to 9.2% (First Revised Estimate), making it the highest in 12 years excluding the post-pandemic bounce.
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Private Final Consumption Expenditure (PFCE) Growth: BEFORE it stood at 5.6% during FY24; NOW it is expected to register a robust growth of 7.6% for FY25.

Prelims Angle

NCERT Connection

This event directly connects to Class 12 Macroeconomics Chapter 2 (National Income Accounting), which explains the computation of macroeconomic aggregates. The NSO's data release is a practical application of the concepts of Real GDP (calculated at constant 2011-12 base year prices) versus Nominal GDP (calculated at current market prices).

Practice Questions

Q1

Correct Statement(s)

Consider the following statements regarding India's GDP calculation and the NSO's estimates: 1. The National Statistics Office (NSO) calculates Real GDP using current market prices to adjust for inflation. 2. The Second Advance Estimates for FY25 revised India's projected full-year real GDP growth upward to 6.5%. Which of the following statements is/are correct?

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