Summary:

ICRA forecasts India’s GDP to grow by 6.4% in Q3 FY25, driven by increased government spending despite weak consumption. After 6.7% growth in Q1 FY25, the economy slowed to 5.4% in September. Growth was supported by higher government expenditure, strong services exports, merchandise recovery, and Kharif crop output, with festive demand aiding consumer-focused sectors.

ICRA noted increased investment activity in Q3 FY25, with YoY growth in capital goods output, cement production, engineering exports, and government spending. Capital expenditure surged 47.7%, a six-quarter high. NSO will release GDP estimates on February 28, with ICRA projecting 6.4% growth, while RBI estimates a slightly higher 6.6% growth for FY25.

Source: IBEF  

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