ICRA: India's Economy Gains Traction, Projects 6.4% Growth Amidst Mixed Signals

India's GDP is projected to grow by 6.4% in the October-December quarter of FY2025, according to ICRA. This marks a recovery from the seven-quarter low of 5.4% in Q2, driven by increased government capital and revenue spending, strong services exports, and improved rural sentiment due to healthy kharif crop output. Sectors like mining and electricity also rebounded after weather-related challenges, while festive demand boosted consumer-focused industries. However, urban consumer sentiment remained subdued. Despite the improvement, the growth pace is expected to remain below initial estimates for Q1 FY2025.

 

Source: Economic Times