According to a report given by the Bank of Baroda this Saturday, India's economy could be set to grow during the last half of the financial year owing to its indicators such as increased air traffic and demand for power services. Furthermore, the Bank of Baroda cites digital payments and a rise in GST and toll collections along with other high frequency indicators to support its claim of economic recovery in India.

Farming is expected to take a leap in growth from 1.4 percent to 3.8 percent this financial year. Rabi sowing has seen a positive trend when compared to the previous year, and an increase in agriculture production is expected. Demand for consumption is expected to increase, as indicated by an increase in GST collection by 8.3% during the Q3 FY25 timeframe.

There are reports suggesting a recovery of urban demand coinciding with an increase in the expected rural demand owing to positive agricultural outcomes. There has been a fall of inflation in December 2024, which is expected to remain low alongside the depreciated value of a rupee, which is concerning as well.

"Global and domestic financial systems will continue to have some uncertainty until the new US president's policies are made clear. With this said, we maintain a relatively positive outlook on India’s growth for 2025,” added the report.

The report however noted that total PV sales volume was lower on account of post festive inventory carryover and few new launches during the month.thei During the month, some high-frequency indicators for example, coupon redemption grew, digital payments, power engagement ,with postcode electronics import and fertilizer sales also saw an uptick indicating a growth in demand.

During the construction of first advance estimates it also became clear that there was a drop in rural two-wheeler sales noted that due to limited cash flow and a growing merging into the EV market. Consumption expanded by 4 percent in FY24 while growth in private consumption spending is expected to increase by 7.3 percent in FY25, opening the door for steady growth during the forecast period.

It further observes the Central Government’s fiscal deficit to GDP ratio did not change between November 10 and November 24, remaining at 5.1 percent (12 Money Market Account basis). From FYTD till November 2024 total spending increased by 3.3 percent on the Monthly basis, which continues to be at the same rate it was in October 24.

Within this, revenue expenditure growth remained at the pace of August 2022 level which was 8.7%. However, The decline in capex eased as well at -12.3% versus -14.7%. Meanwhile, the center reported maintain a net revenue growth of 8.7% as of November 24.

In the case of income, there was a very small drop in the growth of collections from indirect taxes to 9.2% from 10.5% while collections from direct taxes increased to 12.1% from previous’s 11.1%. Also, collections that are non tax balanced well, the report also recollected.