India&rsquo;s GDP growth in Q4 is projected at 6.8 % which brings FY25 growth at 6.3 %, supported by strong momentum in sectors such as agriculture, hotels and transport and construction, according to a new report.&nbsp;
While overall consumption growth is likely to remain healthy, supported by rural demand, the mixed outlook of urban demand needs monitoring, according to the CareEdge Ratings report, titled &lsquo;The Economic Meter and GDP Preview for Q4FY25&rsquo;.
&ldquo;Strong central capex disbursement towards the end of Q3 will support investment growth in Q4,&rdquo; the report mentioned.
Going forward, factors such as recovering rural demand, a lower tax burden, policy rate cuts, falling inflation, and expectations of a good monsoon should support an improvement in economic activity.
A sustained recovery in consumption will be critical to drive a meaningful uptick in corporate capex. However, global uncertainties pose a headwind. We expect the FY26 GDP growth at 6.2 %, said the report.
Agricultural activities have remained strong, with Rabi sowing of foodgrains surpassing last year's level by 2%. Domestic tractor sales increased by 23.4 % YoY in Q4 FY25, outperforming the 13.5 % YoY growth in Q3.
Additionally, fertiliser sales grew by 5.4 % in January-February 2025, higher than a growth of 0.4 % in Q3 FY25.
Domestic air passenger traffic grew by 12 % YoY in Q4 FY25, higher than 11.4 % YoY in Q3. IIP mining expanded by 2.1 % in Q4 FY25, higher than 1.8 % in Q3.
&ldquo;Although central capex contracted by 4 % in Jan-Feb 2025, robust spending toward the end of Q3 FY25 is expected to support construction activity in Q4, given the typical lag in its impact,&rdquo; the report mentioned.
IIP infrastructure and construction goods also showed improvement in Q4 FY25 growing by 7.6 %, higher than 7 % in Q3. 
However, highway construction and bitumen consumption contracted by 8.4 % YoY and 3.8 % YoY, respectively in Q4, said the report.
&mdash;IANS
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India's economy growing with strong rural support

India's GDP grows 6.8% in Q4; strong rural demand, capex boost FY25 growth to 6.3%

India's Q4 GDP Grows 6.8%, FY25 At 6.3%

India's GDP grows 6.8% in Q4; strong rural demand, capex boost FY25 growth to 6.3%

May 23, 2025 | 17:50 IST