The Indian economy is expected to grow at a rapid pace in the third quarter of this financial year (October-December 2024). This estimate has come from the ICRA report, which says that there have been positive signs of improvement in economic activities in the last few months. According to the report, the growth rate may increase in the third quarter as compared to the first half of FY 2025 (April-September 2024).

Signs of improvement in November figures

According to ICRA, the preliminary data for November 2024 has shown some positive signs. These include increased demand for electricity and increased vehicle registration figures during the festive season. In view of these signs, it is expected that economic activities can grow more rapidly. Especially, the kind of increase in vehicle registration is encouraging.

growth in the automotive industry

The report said that vehicle registrations grew by 32.4 percent year-on-year in October 2024, while the figure fell by 8.7 percent in September. This growth is especially due to the festive season demand and market improvement. Also, the production of two-wheelers has registered an increase of 13.4 percent, which reflects the state of the automobile industry.

Increase in non-oil exports

According to ICRA, India's non-oil exports grew by 25.6 percent in October 2024, up from 6.8 percent in September. The main contributors to this growth have been export products such as electronic products, engineering goods, chemicals, and readymade garments. This indicates that India's export sector is now getting stronger and its share in the global market is increasing.

Slight improvement in rail and diesel consumption

Another important indicator of economic activity is a 1.5 percent increase in rail freight and a marginal 0.1 percent improvement in diesel consumption. While diesel consumption had declined by 1.9 percent in September 2024, its figure saw improvement in October. This shows that economic activities are getting back on track and demand from industries is increasing.

Strength in economic indicators

According to ICRA's Business Activity Monitor, year-on-year growth in October 2024 was 10.1percentt, the highest in the last eight months. This data indicates that growth trends in the Indian economy are strengthening and the GDP growth rate will also remain positive in the coming months.

It is worth noting that overall, the ICRA report shows that the Indian economy is now on the path of gaining momentum. Various economic indicators, such as vehicle registration, export growth, and the Business Activity Monitor, clearly indicate that India's economic growth pace may accelerate in the coming quarters.