The Indian economy is demonstrating resilience, bolstered by increased festival spending and a recovering agricultural sector.

Private consumption has rebounded significantly, driven by festive spending, which contributes to a positive medium-term economic outlook.

However, private investment remains weak, as evidenced by a decline in sequential investment in fixed and noncurrent assets during the July to September 2024 period, largely due to subdued corporate earnings.

Despite this, the manufacturing and construction sectors are expected to maintain their momentum, fueled by the adoption of electric vehicles and supportive policies that promote job creation in clean energy.

The services sector in India is also projected to sustain its growth, characterized by robust job creation and high levels of consumer and business confidence.

Financial conditions remain accommodative, with ongoing corporate bond issuances and foreign direct investment inflows, despite pressures from global uncertainties affecting bond and equity markets.

In agriculture, the integration of digital crop surveys and drones is anticipated to enhance productivity and efficiency in real-time production assessment and supply management.

The increase in kharif output, along with optimism regarding rabi production, is expected to boost farm income and rural demand, further enhancing e-commerce activity.

E-commerce is thriving, particularly in rural areas, as companies adapt their marketing strategies to engage Generation Z, even as physical malls see lower foot traffic.

Record production estimates for kharif foodgrains and promising prospects for the rabi crop are set to contribute to a record foodgrains target for the 2024-25 period.

Globally, economic activity showed resilience in the fourth quarter of 2024, despite fragile confidence and a rise in protectionist measures.