New Delhi, May 23
India’s GDP growth in Q4 is projected at 6.8 per cent which brings FY25 growth at 6.3 per cent, supported by strong momentum in sectors such as agriculture, hotels and transport and construction, according to a new report.
While overall consumption growth is likely to remain healthy, supported by rural demand, the mixed outlook of urban demand needs monitoring, according to the CareEdge Ratings report, titled ‘The Economic Meter and GDP Preview for Q4FY25’.
“Strong central capex disbursement towards the end of Q3 will support investment growth in Q4,” the report mentioned.
Going forward, factors such as recovering rural demand, a lower tax burden, policy rate cuts, falling inflation, and expectations of a good monsoon should support an improvement in economic activity.
A sustained recovery in consumption will be critical to drive a meaningful uptick in corporate capex. However, global uncertainties pose a headwind. We expect the FY26 GDP growth at 6.2 per cent, said the report.
Agricultural activities have remained strong, with Rabi sowing of foodgrains surpassing last year's level by 2 per cent. Domestic tractor sales increased by 23.4 per cent YoY in Q4 FY25, outperforming the 13.5 per cent YoY growth in Q3.
Additionally, fertiliser sales grew by 5.4 per cent in January-February 2025, higher than a growth of 0.4 per cent in Q3 FY25.