Fri Feb 28 18:40:00 UTC 2025: ## India’s Economy on Track for 7.6% Growth in Q4, Driven by Maha Kumbh Spending and Exports

**New Delhi, [Date]** – India’s economy is projected to achieve a robust 7.6% growth rate in the fourth quarter (Q4) of FY25, boosting the full-year growth to 6.5%, according to Chief Economic Advisor (CEA) V. Anantha Nageswaran. This positive forecast is largely attributed to the massive spending generated by the Maha Kumbh Mela and strong performance in exports and government capital expenditure.

The Kumbh Mela, held in Prayagraj from January 13th to February 26th, attracted an estimated 50 to 60 crore pilgrims, resulting in significant economic activity. While the Uttar Pradesh government reported a Rs 3.5 lakh crore economic boost from the event, the CEA highlighted the substantial additional spending by pilgrims as a key factor contributing to the projected Q4 growth.

Further bolstering the economic outlook is the strong performance of merchandise exports (excluding petroleum and gems & jewellery), which have shown nearly 10% growth from April to January. Government capital expenditure has also picked up pace, reaching approximately 75% of the annual target by January.

These positive trends, coupled with strong rural demand, a revival in urban consumption, and improved agricultural prospects (robust kharif production, better rabi sowing, and higher reservoir levels), are expected to maintain India’s economic momentum despite global uncertainties. The CEA also cited the Union Budget’s focus on income tax relief, agriculture, MSMEs, investment, and exports as factors contributing to positive medium-term economic prospects. The nominal GDP is also expected to reach $4 trillion in FY25.

The CEA’s announcement follows the release of official data showing India’s GDP growth at 6.2% in Q3FY25, a significant improvement over the previous quarter. This, along with revisions to Q1 and Q2 growth figures, supports the projection of 7.6% growth in the final quarter.

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