GDP Growth Picks Up In Dec Qtr

New Delhi: India’s GDP growth momentum has improved in the October-December quarter of the current financial year (FY25) and inflation has eased, according to an HSBC Research report released on Tuesday.

“GDP growth came in at a disappointing 5.4 per cent in the quarter ending September. Our analysis of 100 activity indicators suggests that the growth momentum has improved in the quarter ending December,” the report stated.

As many as 65 per cent of the indicators are growing at a positive clip in the December quarter compared to 55 per cent in the previous one. The improvements have been the clearest in agriculture, exports and construction. Even urban consumption has shown some improvement, according to the report.

However, the report states that this improvement comes with limits. Utilities and private investment indicators continue to remain subdued. Things are still not as good as the June quarter, when about 75 per cent of the indicators were growing positively. With activity momentum midway between the June highs and the September lows, GVA growth is also trending at 6.5 per cent, according to the report.