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

‘Kaanta Laga’ Girl Shefali Jariwala Passes Away At 42 In Mumbai

Shefali Jariwala, best known as the ‘Kaanta Laga girl’, has died at the age of…

19 mins ago

UN Chief Urges Immediate Ceasefire In Gaza; Highlights Deepening Humanitarian Crisis

UN Secretary-General Antonio Guterres has called for an immediate ceasefire in Gaza, following the temporary…

40 mins ago

Horoscope Today, 28 June 2025: Know What Your Zodiac Sign Says!

Horoscope Today, 28 June 2025: Curious what the stars have in store? Discover how your…

3 hours ago

4415 Indians Evacuated From Iran And Israel Under ‘Operation Sindhu’: MEA

India evacuated 4,415 nationals from Iran and Israel under Operation Sindhu, the MEA said Friday,…

10 hours ago

PM Modi To Embark On Five-Nation Tour To Strengthen Global Partnerships

PM Narendra Modi will embark on a five-nation tour from July 2, visiting Ghana, Trinidad…

10 hours ago

Allahabad HC Directs UPPSC To Allow Petitioner A Scribe For PCS Main Exam

The Allahabad HC has directed the UPPSC to allow petitioner Sameer Khan to use a…

10 hours ago