GDP Growth To Pick Up Pace By Q4

New Delhi: The dip in India’s Q2 GDP growth is temporary, driven by seasonal monsoon effects and election-related factors, and should begin to correct by January-March period (Q4) FY25, according to industry experts. For equity markets, this data is unlikely to have a significant impact.

“Any short-term dip in market sentiment could present an opportunity for investors with surplus funds to build long-term positions, given the underlying strength in key consumption and service sectors,” said Dr Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital.

There are several encouraging signs within the data, like private consumption grew at an impressive 6 per cent, significantly higher than both the overall GDP growth rate and the 2.6 per cent recorded in Q2 FY24.

“This dispels recent concerns about weakness in private consumption. Government consumption improved from the previous quarter, but was lower compared to the same period last year, likely reflecting cautious spending ahead of elections,” said Gupta.

The primary sector showed stability with marginal GVA growth, although mining was impacted by the monsoon.