Indian Economy 2025: India's economy is growing strongly despite global instability in early 2025. According to a report by Bank of Baroda, many economic indicators have registered a spectacular growth in the third quarter.

GST collection and boom in service sector

According to the report, GST collection grew by 8.3% in October-December 2024, reaching Rs 5.5 lakh crore. This is a clear sign of improvement in consumption.

The services sector also performed strongly. The services PMI rose to 59.2 in the third quarter, up from 58.1 in the same period last year.

Improving urban consumption

The festive season boosted urban consumption. Air travel grew by 11.6%, compared to 7.8% in the previous quarter. Vehicle registrations also saw a surge.

India is stronger than China and America

The report said that China's manufacturing sector is slowing down. At the same time, the labor market in America has weakened. In contrast, the current account deficit (CAD) in India decreased to 1.2% of GDP, which was 1.3% last year.

Great performance of the stock market

Sensex and Nifty 50 recorded a growth of 8.7% and 9% respectively in calendar year 2024. Sensex touched a historic level of 85,500.

Real estate and IT sector did wonders

Real estate, consumer durables and IT sectors performed well in 2024. The Indian rupee weakened by 2.8% against the dollar, but it performed better against other foreign currencies.

Expectations in government spending and investment

According to the report, government expenditure will pick up in the second half. Along with this, industrial production (IIP) is also expected to increase due to improvement in government and private investment.

expert opinion

Bank of Baroda economist Sonal Badhan said, "Strength in services exports and remittances has reduced the trade deficit. Corporate results are also expected to be better in the third quarter."

Positive indicators

India's economy has shown improvement through high frequency indicators. According to the report, this pace may accelerate further in 2025.

It is worth noting that India's economy is showing signs of stability and growth amidst global challenges. GST collection, service sector, and other indicators of consumption are pointing towards economic strength in 2025.