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BW Businessworld
|January 25, 2025
THE FIRST quarter data points to a notable increase in private consumption and a modest improvement in investment activity. We expect these two to be the fundamental growth pillars as global uncertainties weigh on net exports. With the conclusion of the Indian elections, we anticipate that government spending will pick up, supporting growth in the coming quarters of FY 2025.
Expectation #1
The previous budget prioritised employment generation and skill development through initiatives like Employment Linked Incentives and internship programmes. According to the Periodic Labour Survey, the Labour Force Participation Rate (LFPR) rose to 74.7 per cent for men and 25.2 per cent for women in June 2024, compared to 73.5 per cent and 23.2 per cent in June 2023. Unemployment rates have also steadily declined. The government is expected to continue enhancing skill development and employment efforts, leveraging the demographic dividend to drive economic growth, boost consumption through higher incomes, and strengthen both supply and demand dynamics.
Expectation #2
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