Comment on India`s GDP data by Ajay Garg, CEO, SMC Global Securities
Below the Comment on India`s GDP data by Ajay Garg, CEO, SMC Global Securities
India’s real GDP grew by 7.4% in the fourth quarter, which is the highest growth rate achieved in all four quarters of FY25. This can be attributed to the higher government spending, robust industrial activity, and stable economic outlook amidst tariff wars and geopolitical tensions. The lowering of inflation to 4.6% in FY25 has also contributed to this GDP growth, leading to higher rural demand and revival in consumption. Private Final Consumption Expenditure (PFCE) has increased by 7.2% in FY25 as compared to 5.6% in the last financial year. This paves the way for the RBI to go with another repo rate cut in the June meeting to support the ongoing economic growth. Hence, the Indian economy seems to be insulated from the geopolitical worries and will continue to attract robust foreign investments.
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