India maintained strong economic momentum in Q1 FY25, with GDP growing at 6.7%. This builds upon a robust cumulative growth of 27% since FY21, demonstrating not just recovery from pandemic losses but transformational changes across productive sectors. All major nonagricultural sectors expanded beyond 5%, indicating broad-based growth, while advancing monsoon and increased kharif sowing brighten agricultural prospects.
The outlook remains positive as public expenditures increase and the rural economy strengthens. At the same time, replenished reservoirs and higher kharif sowing suggest stable food prices. However, the uneven monsoon distribution warrants careful monitoring.
