Business

Indian Economy In Robust Position Globally In 2025 As High-Frequency Indicators Show Growth

India enters 2025 in a robust economic position, with high-frequency indicators showing accelerated growth in Q3 FY25, according to a Bank of Baroda (BoB) report. Key sectors like GST collections, services PMI, air passenger growth, and vehicle registrations saw notable improvement compared to Q2.

GST collections rose by 8.3% year-on-year to ₹5.5 lakh crore in Q3, up from ₹5.3 lakh crore in Q2, indicating improved consumption patterns. Air passenger traffic increased by 11.6% in Q3, higher than the 7.8% growth in Q2, driven by festive demand. Services PMI averaged 59.2 in Q3, showcasing strong activity in the services sector.

Global Economy Faces Mixed Challenges

Global economic signals remain uncertain. China struggles with slow manufacturing growth and challenges in boosting domestic consumption and real estate. The US economy sends mixed signals, with a softening labor market and weak manufacturing, but robust retail sales and services activity. In Europe, manufacturing remains sluggish, though the services sector shows recovery.

Key Domestic Indicators Stay Positive

India’s current account deficit (CAD) narrowed to 1.2% of GDP in Q2 FY25, supported by strong services exports and remittances despite a higher trade deficit. The Sensex and Nifty 50 surged 8.7% and 9% in 2024, with Sensex reaching an all-time high of 85,500.

Real estate, consumer durables, and IT led stock market gains. The rupee depreciated by 2.8% in 2024 but remained resilient among peers. Bond market momentum improved due to India’s inclusion in global indices like JP Morgan and Bloomberg.

BoB predicts stronger quarterly corporate results for Q3 FY25 and recovery in H2 FY25. Inflation is expected to ease, allowing a potential 25 bps rate cut in February 2025. The report anticipates government spending and private investment will rise, boosting IIP growth in H2 FY25.

Also Read: Global Central Banks Add 53 Tonnes Of Gold In November 2024; RBI Buys 8 Tonnes

Ajaypal Choudhary

Recent Posts

Musk-Trump Fallout Threatens NASA And Pentagon Operations: Report

A recent fued between Elon Musk and former US President Donald Trump has raised serious…

13 mins ago

Rajeshwar Singh Honoured With ‘Excellence In Political & Public Life’ Award At House Of Lords

Rajeshwar Singh was honoured with the ‘Excellence in Political and Public Life’ Award at the…

14 mins ago

EaseMyTrip Launches ‘EMT Invest’ To Back Profitable Businesses: CEO Nishant Pitti

India’s leading travel tech company, EaseMyTrip, has launched a new investment platform named ‘EMT Invest’,…

21 mins ago

MyGov Launches Exciting Contests To Celebrate 11 Years Of Transformative Governance

Marking 11 years of transformative governance, citizen engagement platform MyGov has launched a series of…

3 hours ago

President Murmu And PM Modi Extend Eid Al-Adha Wishes, Call For Unity And Service

On Saturday, President Droupadi Murmu and PM Modi extended warm wishes to citizens on occasion…

3 hours ago

JD Vance Resignation Claim Is False; Confirms No Credible Source

Viral claims about US Vice President JD Vance resigning due to tensions between Donald Trump…

4 hours ago