• Latest
econmy

Resilient economy

September 5, 2025
rohit sharma

Rohit oldest Indian batter to take No. 1 spot in ICC rankings

October 29, 2025
modi

PM Modi, Japanese PM Takaichi discuss special strategic partnership

October 29, 2025
India, Nepal ink pacts for cross-border power transmission lines

India, Nepal ink pacts for cross-border power transmission lines

October 29, 2025
Frontier tech can help create 100 million jobs: NITI Aayog

Frontier tech can help create 100 million jobs: NITI Aayog

October 29, 2025
india-chaina

India, China hold 23rd round of Corps Commander Level Meeting

October 29, 2025
Anahat stuns World No. 7 Gilis to storm into Canadian Open semifinals

Anahat stuns World No. 7 Gilis to storm into Canadian Open semifinals

October 29, 2025
Ashwini Vaishnaw

Cabinet approves terms of reference for 8th Central Pay Commission

October 29, 2025
Energy future taking shape

India poised to emerge as global oil refining hub: Puri

October 29, 2025
President Murmu takes historic sortie in Rafale

President Murmu takes historic sortie in Rafale

October 29, 2025
Cyclone Montha stirs storms across MP, Chhattisgarh

Cyclone Montha stirs storms across MP, Chhattisgarh

October 29, 2025
trump

He’s a killer, tough as hell: Trump lavishes praise on PM Modi

October 29, 2025
Dommaraju Gukesh

Gukesh takes ‘calm’ revenge on Nakamura

October 28, 2025
Blitzindiamedia
Contact
  • Blitz Highlights
    • Special
    • Spotlight
    • Insight
    • Education
    • Health
    • Sports
    • Entertainment
  • Opinion
  • Legal
  • Perspective
  • Nation
    • East
    • West
    • North
    • South
  • Business & Economy
  • World
  • Hindi Edition
  • International Editions
    • US (New York)
    • UK (London)
    • Middle East (Dubai)
    • Tanzania (Africa)
  • Blitz India Business
No Result
View All Result
  • Blitz Highlights
    • Special
    • Spotlight
    • Insight
    • Education
    • Health
    • Sports
    • Entertainment
  • Opinion
  • Legal
  • Perspective
  • Nation
    • East
    • West
    • North
    • South
  • Business & Economy
  • World
  • Hindi Edition
  • International Editions
    • US (New York)
    • UK (London)
    • Middle East (Dubai)
    • Tanzania (Africa)
  • Blitz India Business
No Result
View All Result
World's first weekly chronicle of development news
No Result
View All Result

Resilient economy

by Blitz India Media
September 5, 2025
in Opinion
econmy

Deepak DwivediTHE Indian economy has put up an impressive show in the June quarter with the gross domestic product (GDP) growing at a remarkable 7.8 per cent year-on-year (y-o-y). Gross value added (GVA) clocked an equally strong 7.6 pc y-o-y growth. The resilience is reassuring at a time when external headwinds, especially the US tariffs, are threatening to slow the growth momentum. As experts point out, low price deflators have contributed to the high real GDP growth number with inflation being very low. Even accounting for the boost to headline numbers from low deflators, it must be said the economy is holding up quite well. Though Government expenditure – both in terms of revenue and capex – has played a big role, most sectors have indeed pulled their weight.

Both consumption and investment have done reasonably well. Belying concerns that consumption is sluggish, the private final consumption expenditure is up 7 pc, on a high base. Moreover, gross fixed capital formation has increased by 7.8 pc, largely due to the Government’s efforts.

YOU MAY ALSO LIKE

Renewed optimism

Electronics LEAP

Where estimates have not lived up to expectations is agriculture, which has grown at only 3.7 pc y-o-y growth on an extremely favourable base. However, given the good monsoon, both kharif and rabi harvests should be good. This is extremely important for the health of the farm economy, rural wages, and farm incomes, which will drive rural consumption. Manufacturing has grown at a good 7.7 pc, which is important since the sector had been languishing.

Construction, which is critical since it creates a large number of jobs, too has reported a good growth, again on an unfavourable base. This suggests a continued momentum in Government projects as also real estate ventures. With interest rates trending down, we could expect the property sector to continue to grow. Another segment comprising trade, transport, hospitality, etc., which is crucial for employment opportunities, has done well to grow at 8.6 per cent, albeit on a low base.

Though Govt expenditure has played a big role, most sectors have indeed pulled their weight

Banking services and real estate too have impressed. However, the deflator used for services sector, experts point out, is significantly lower than the average used over the last five-six quarters. Notably, the growth in exports at 6.3 pc was slower than anticipated; economists were expecting this to rise as a result of front-loading exports to the US but that does not seem to have happened.

With little clarity on US tariffs and highfrequency indicators for July and August not being particularly exciting, there could be some loss of momentum. The tax relief, lower interest rates, and GST cuts should boost consumption, but this could be offset by loss of livelihoods in export-oriented units and also in IT firms. Even otherwise, hiring numbers have not been particularly strong. The Government has been doing much of the heavy lifting as private capex is yet to grow meaningfully. However, direct tax collections have been somewhat subdued so far and a potential loss of revenue on account of GST cuts and concessions for exporters cannot be ruled out. Consequently, there could be some cuts in expenditure as the Government might not want to let the fiscal deficit slip too much. As such, the central bank must ensure that interest rates stay affordable as otherwise credit flows could slow.

Previous Post

AI: A strategic tool for India’s progress

Next Post

Bhagwat consolidates the idea of Bharat

Related Posts

renew
Opinion

Renewed optimism

October 24, 2025
electronics
Opinion

Electronics LEAP

October 24, 2025
Kerala-battles
Opinion

Kerala battles for NEW IDENTITIES

October 24, 2025
Timely and critical
Opinion

Timely and critical

October 17, 2025
Paving way for greener future
Opinion

Paving way for greener future

October 17, 2025
upi
Opinion

UPI: The face of India’s innovation

October 10, 2025

Recent News

rohit sharma

Rohit oldest Indian batter to take No. 1 spot in ICC rankings

October 29, 2025
modi

PM Modi, Japanese PM Takaichi discuss special strategic partnership

October 29, 2025
India, Nepal ink pacts for cross-border power transmission lines

India, Nepal ink pacts for cross-border power transmission lines

October 29, 2025
Frontier tech can help create 100 million jobs: NITI Aayog

Frontier tech can help create 100 million jobs: NITI Aayog

October 29, 2025
india-chaina

India, China hold 23rd round of Corps Commander Level Meeting

October 29, 2025
Anahat stuns World No. 7 Gilis to storm into Canadian Open semifinals

Anahat stuns World No. 7 Gilis to storm into Canadian Open semifinals

October 29, 2025
Ashwini Vaishnaw

Cabinet approves terms of reference for 8th Central Pay Commission

October 29, 2025
Energy future taking shape

India poised to emerge as global oil refining hub: Puri

October 29, 2025
President Murmu takes historic sortie in Rafale

President Murmu takes historic sortie in Rafale

October 29, 2025
Cyclone Montha stirs storms across MP, Chhattisgarh

Cyclone Montha stirs storms across MP, Chhattisgarh

October 29, 2025
trump

He’s a killer, tough as hell: Trump lavishes praise on PM Modi

October 29, 2025
Dommaraju Gukesh

Gukesh takes ‘calm’ revenge on Nakamura

October 28, 2025

Blitz Highlights

  • Special
  • Spotlight
  • Insight
  • Entertainment
  • Health
  • Sports

International Editions

  • US (New York)
  • UK (London)
  • Middle East (Dubai)
  • Tanzania (Africa)

Nation

  • East
  • West
  • South
  • North
  • Hindi Edition

E-paper

  • India
  • Hindi E-paper
  • Dubai E-Paper
  • USA E-Paper
  • UK-Epaper
  • Tanzania E-paper

Useful Links

  • About us
  • Contact
  • Team
  • Privacy Policy
  • Sitemap

©2024 Blitz India Media -Building A New Nation

    No Result
    View All Result
    • Blitz Highlights
      • Special
      • Spotlight
      • Insight
      • Education
      • Sports
      • Health
      • Entertainment
    • Opinion
    • Legal
    • Perspective
    • Nation
      • East
      • West
      • North
      • South
    • Business & Economy
    • World
    • Hindi Edition
    • International Editions
      • US (New York)
      • UK (London)
      • Middle East (Dubai)
      • Tanzania (Africa)
    • Download
    • Blitz India Business

    © 2025 Blitz India Media -BlitzIndia Building A New Nation