NEW DELHI: India’s GDP growth is expected to accelerate in the third quarter of FY25, according to a new report by ICRA. The growth rate, which has shown a steady performance in the first half of the fiscal year, is predicted to pick up momentum in the latter half. This improvement is attributed to several factors, including a recovery in key sectors such as manufacturing, agriculture, and services.
The ICRA report outlines that while India’s economic growth slowed down in the initial months of FY25, the country’s resilience in sectors like digital services, infrastructure, and government-led spending are expected to help the economy regain its pace. Strong consumer demand, coupled with favorable monsoon conditions, is likely to drive consumption growth in the coming months.
Additionally, the government’s focus on boosting capital expenditure and infrastructure development is expected to positively impact growth in Q3. Experts suggest that while external factors such as global economic conditions remain uncertain, India’s domestic economic strength will play a crucial role in its growth trajectory.
With a projected improvement in the third quarter, ICRA forecasts that the Indian economy will maintain its positive growth outlook for the rest of the fiscal year, despite global challenges.
