New Delhi
With the beginning of the year 2025, there is a situation of instability in the world before the newly elected US President Donald Trump takes office, but, according to the high frequency indicators of the third quarter of the current financial year, India’s economy is growing rapidly. Is. This information was given in a report released on Thursday. Bank of Baroda report said that GST collections, Service Purchasing Managers Index (PMI), air passenger growth and vehicle registrations have seen strong growth in the third quarter of FY25 as compared to the second quarter of FY25. On the other hand, the pace of China’s manufacturing sector is slowing down and it has become a challenge for the administration to increase domestic consumption and take the real estate sector back to growth.
The US economy is giving mixed signals about growth. The labor market appears to be soft and manufacturing activity remains weak. Retail sales, housing sales and service sectors are performing well. Manufacturing activities in Europe have not yet picked up pace. The service sector is again strengthening its position. The current account deficit (CAD) in India narrowed to 1.2 per cent of GDP in Q2FY25, compared to 1.3 per cent of GDP in Q2FY24.
Sonal Badhan, economist at Bank of Baroda, said, “While the trade deficit was high last year, a pick-up in services exports as well as continued strength in remittances have narrowed the current account deficit. Our year-end market analysis shows that both Sensex and Nifty 50 gained 8.7 per cent and 9 per cent in CY24. “Sensex made a new all-time high this year and crossed the 85,500 mark.”
Real estate, consumer durables and IT were the best performers in 2024. During this period, the Indian rupee declined by 2.8 percent against the dollar, but its performance was quite good compared to other foreign currencies. According to the report, high frequency indicators have shown a strong improvement in the October-December 2024 period. GST collections grew by 8.3 per cent (y-o-y) in the third quarter to Rs 5.5 lakh crore, up from Rs 5.3 lakh crore in the second quarter, indicating further improvement in consumption patterns.
Apart from this, due to festive demand, other indicators of urban consumption have also improved. Air travel increased by 11.6 percent in the third quarter, compared to 7.8 percent in the second quarter. Services PMI stood at 59.2 in the third quarter, compared to 58.1 in the same period last year.
“We expect corporate results to also be better in the third quarter,” Badhan said. The report further said that IIP growth in H2FY25 will be better than H1FY25 on expectations of a pick-up in government spending in the second half and a subsequent recovery in both public and private investment.
