India GDP Growth Likely Rebounded in Q3: Poll

It was driven by rise in govt spending that helped offset weak household demand

- Reuters

BENGALURU: India's economy likely rebounded last quarter, expanding 6.3%, driven by increased government spending that helped offset weak household demand, according to a Reuters poll of economists who forecast relatively modest growth ahead.

A national election in April-June last year forced the government to curb infrastructure spending, a key driver of economic expansion in recent years in what is still the world's fastest-growing major economy.

That dragged growth down to 5.4% in July-September, well below the 8.2% average last fiscal year. Since then, foreign investors have withdrawn billions of dollars from the equity market.

But government expenditure likely rose in double digits during the last three months of 2024, suggesting an expected rebound in economic growth is more policy-driven than broad-based.