GDP data of the country’s third quarter will be released on February 28, will the effect of weak demand look?

India GDP: India’s GDP had increased at the rate of only 5.4 percent in the third quarter of FY 2025, but some improvement is expected in the third quarter. According to a report by State Bank of India (SBI), India’s economy remains flexible despite all the uncertainties like American tariff, fall in rupee. The bank has estimated the country’s GDP growth for the October-December quarter (Q3 FY25) to be between 6.2-6.3 percent.

GDP increased so much in the last quarter

According to Reuters’ economists, India’s economy has increased at a rate of 6.3 percent in the previous quarter, which was mainly possible due to an increase in government spending. This helped in balance the weak domestic demand. Last year, due to the elections held in April-June, the government had to cut the infrastructure, which was the major factor of economic development in the last few years.

This is the reason for economic growth

In July-September, the GDP of the country was reduced to 5.4 percent, which is much lower than 8.2 percent of the last financial year. Since then, foreign investors have removed billions of dollars from the Indian stock market. However, in the last three months of 2024, government spending is likely to increase double digits. In such a situation, the reason for economic growth is more than the government policy instead of domestic demand. By the way, the demand and consumption of domestic things increases during the festive season from October to December, which was relatively less last year.

Economists estimated this

According to a poll conducted between economists of Reuters on 17-24 February, Asia’s third largest economy is expected to grow at the rate of 6.3 percent annually in India’s GDP October-December quarter, which is about two years in the last quarter in the last quarter The lower level is more than 5.4 %. The forecast for data released by the government on February 28 has been put between 5.8 percent to 7.4 percent.

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