Growth momentum likely to stay in Q1FY25: FinMin
economic activity in FY25 and the growth momentum is expected to continue through the first quarter, the finance ministry said on Friday, flagging, however, risks from volatile global oil and other commodity prices.
In its monthly economic report for April, the ministry said the industrial activity is rising and fixed investment is gathering strength on the back of elevated government capital spending that is also crowding in private investment.
«Major pillars of India's macro-economic strength, including growth, price stability and fiscal management, are directionally positive and mutually reinforcing,» it said.
Commodity shock
The report cautioned that unrelenting geopolitical tensions and volatility in global commodity prices, especially of petroleum products, «present substantial multi-frontal challenges».
«Nonetheless, the expectation is that the macro-economic buffers nurtured and strengthened during the post-Covid management of the economy will help the Indian economy navigate these challenges reasonably smoothly.» The positive farm sector outlook, backed by normal monsoon and easing of food prices, should also help India «firewall against any adverse pressures» that may arise from global commodity price shocks, it said.
Manufacturing, services outlook
Manufacturing outlook remains bright on the back of increased capacity utilisation and expected stronger external support following a modest improvement in European demand and a steady US economy that could prop up exports. The services sector will get a
