Desk : According to an ICRA report, the Indian economy is expected to grow at a faster pace in the third quarter (October-December 2024) of the current financial year than in the first half (April-September 2024).
The report says this optimism is based on improving economic indicators and strong levels of activity across all sectors. The report says preliminary data for November 2024 indicates a positive trend.
Electricity demand has increased due to favorable base effect, while vehicle registrations continue to rise due to festival season demand. “These trends support ICRA’s expectations of an acceleration in GDP growth in Q3FY2025 compared to H1FY2025,” it said. .
According to the report, several indicators related to mobility and transportation have shown significant improvement. Vehicle registrations increased year-on-year to 32.4 percent in October 2024, a sharp improvement from the 8.7 percent drop in September 2024.
This growth was due to strong demand for two-wheelers and passenger vehicles. Gasoline consumption increased between 3.0 percent and 8.7 percent in September, and domestic air passenger traffic increased between 6.4 percent and 9.6 percent.
Additionally, two-wheeler production increased by 13.4 percent, rail freight traffic improved to 1.5 percent from a decline of 0.7 percent and diesel consumption recorded a marginal growth of 0. .1 percent after a 1.9 percent drop in September.
The report also said the country’s non-oil exports also performed strongly, growing 25.6 percent in October 2024 compared to 6.8 percent in September. Major contributors to this growth include electronics, engineering products, chemicals and ready-made garments.
ICRA’s Business Activity Monitor, a composite indicator of economic activity, showed a year-on-year growth of 10.1 per cent in October 2024, the highest in eight months. Despite challenges from the high base effect, this is better than the 6.6 percent growth recorded in September 2024.
The encouraging trends across sectors reflect India’s economic resilience and reinforce expectations of strong GDP growth in the coming months.
