India's economy is projected to see stronger growth in the fourth quarter of the financial year 2024-25, supported by a surge in government spending and a boost in capital investments, according to a recent report by Union Bank of India (UBI).
The report highlights that various infrastructure projects and increased public expenditure are likely to drive economic momentum in the coming months. With the government focusing on capital expenditure, sectors such as construction, transportation, and manufacturing are expected to benefit significantly.
Analysts also note that domestic demand is showing signs of improvement, and private investments may gradually pick up pace, especially if inflation remains under control. This anticipated growth comes at a time when India is trying to maintain its position as one of the fastest-growing major economies in the world.
UBI's outlook is cautiously optimistic, suggesting that a stable policy environment and continued reforms could further strengthen economic fundamentals.