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 collection, Service Purchasing Managers Index (PMI), air passenger growth and vehicle registration have seen strong growth in the third quarter of the financial year as compared to the second quarter of FY25.
China’s manufacturing sector slowing down
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 activities remain weak. Retail sales, housing sales and service sectors are performing well. Manufacturing activities in Europe have not yet gained momentum. The service sector is again strengthening its position.
Current account deficit 1.2% of GDP in the second quarter of FY 2025
The current account deficit (CAD) in India reduced to 1.2 percent of GDP in Q2 FY2025, while it stood at 1.3 percent of GDP in Q2 FY2024.
Real estate, consumer durables and IT performed best 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.
GST collection increased by 8.3% to Rs 5.5 lakh crore in the third quarter
According to the report, high frequency indicators have shown a strong improvement in the period October-December 2024. GST collections increased by 8.3 per cent (year-on-year) to Rs 5.5 lakh crore in the third quarter, higher than 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, whereas it was 7.8 percent in the second quarter. Services PMI stood at 59.2 in the third quarter, whereas it was 58.1 in the same period last year. Badhan said, “We hope that the results of corporates are also expected to be better in the third quarter.”
The report further said that IIP growth in the second half of FY2025 will be better than the first half on expectations of a pick-up in government spending in the second half and subsequent improvement in both public and private investment.
