The domestic GDP growth is expected to advance further in the fourth quarter of the current financial year, supported by a strong boost to consumption spending along with a revival in investment, according to a report by Bank of Baroda.
The much-anticipated festive season may not deliver the usual consumption boost this year, with Ambit Capital warning that weak labour markets, slowing credit, and mounting tariffs could weigh on consumer sentiment despite recent tax cuts.
India's growth trajectory is being actively supported by a series of coordinated policy measures aimed at boosting consumption, investment, and exports, according to Navneet Munot, Managing Director and CEO of HDFC Asset Management Company Limited.
Indian stock markets opened flat on Tuesday as continuous foreign portfolio investor (FPI) outflows kept indices in check, even as the government recently announced several consumption-boosting measures.
The report estimated that the GST 2.0 regime, while involving an average revenue loss of Rs 85,000 crore, has resulted in a substantial consumption boost of Rs 1.98 lakh crore.
Sachin Gupta, Chief Rating Officer, CareEdge Ratings, stated, "The budget is likely to focus on supporting consumption, boost manufacturing competitiveness to support job creation and tap the demographic potential, emphasis on agriculture via higher allocation for agri r&d, farmers' welf