GDP growth will remain 6.3-6.4% due to improvement in government spending and consumption
New Delhi:
India’s GDP growth (GDP growth) is expected to remain positive in the third quarter of FY 2025 (FY 2025) and it can remain in the range of about 6.3-6.4 percent. Experts said on Wednesday that the main reason for this is the increase in government spending and improvement in domestic consumption during the festive season.
Capital expenditure is about 30% more than the average of two quarters
Capital Expenditor (Capital Expected) increased to Rs 2.7 lakh crore, which is about 30% more than the average of the first two quarters. However, due to the general election, there was a slight decline.
Agricultural production was strong due to favorable monsoon and good yield of kharif crop, which had a positive impact on rural consumption.
Service sector strengthened in the third quarter of financial year 2025
Increased consumption, more government capital expenditure and better agricultural production during the festive season also strengthened the Service Sector in the third quarter of FY 2025. Also, during this time there was an increase in service exports.
India’s GDP growth rate is estimated to be 6.2-6.3% in the third quarter
SBI economists have estimated India’s GDP growth rate of 6.2-6.3% for the third quarter (October-December) of FY 2024-25 (FY 2024-25). This estimate has been set up on the basis of increasing demand, Capex Trends, Indian Companies Ebitda and Corporate GVA (Corporate GVA).
GDP may increase at the rate of 6.6% in October-December period
According to the BANK of Baroda report, India’s GDP can grow at a rate of 6.6% in the October-December period, which will contribute to the Agriculture Sector, government spending and service sector. According to the report, government capital expenditure remains an important factor of economic stability, while the financial sector and rural demand are seen to be strong.
However, long-term GDP stability of GDP will mainly depend on income growth, job creation and private sector investment.
Growth Outlook positive in the third quarter
According to experts, there is a positive outlook of growth in the third quarter of FY 2025 (FY 2025). Its support is largely available from public expenditure, favorable monsoon, overcrowding of kharif crops, strong performance of service sector and service exports.