India will have a growth of over 7 % in ensuing four quarters

Despite the recent challenges and lower-than-expected growth of 5.4 per cent in second quarter of 2025 (Q2FY25), the subsequent four quarters growth is expected to remain on an average of over 7 percent, says the annual outlook of India by Franklin Templeton.

The outlook for India says high-frequency indicators suggest that the domestic slowdown has bottomed out in Q2FY25 and recovery signs are evident, driven by festive demand and rural activities.

“In the subsequent four quarters growth is expected to remain on an average above 7.0 per cent, supported by strong domestic demand and prudent Government policies,” says the annual outlook.

Aided by the Government’s capital expenditure, Industrial activities are expected to normalise. The services sector will continue to expand, the recent HSBC PMI data for services expanded to 58.4 in November.

In addition, agricultural growth is likely to improve, supported by healthy kharif production and better rabi sowing. The outlook says that over the past 12 months, domestic headline inflation has mostly stayed within the RBI’s tolerance band, briefly falling below 4.0 percent in July and August 2024, before rebounding and exceeding 6.0 percent in October because of high vegetable and food prices. However, the average month-on-month inflation from December 2023 to November 2024 was around 5.0 percent. (ANI)

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