ENA Economy 2024-11-14 17:01:54 <p><span style="font-size:14px"><strong>New Delhi, Nov 14 (KNN)</strong> India's economic growth in the latter half of the fiscal year 2024-25 is expected to be primarily driven by rural demand and government expenditure, according to a recent report by ICICI Bank. </span></p> <p><span style="font-size:14px">The analysis highlights an emerging momentum in the rural economy, complemented by the government's sustained focus on infrastructure development and welfare initiatives.</span></p> <p><span style="font-size:14px">The manufacturing sector has shown encouraging signs, with 19 out of 23 sub-sectors registering growth, marking a significant improvement from the previous month's figure of 12. </span></p> <p><span style="font-size:14px">Notable expansion has been observed in electrical equipment, transport equipment, furniture, and rubber and plastics manufacturing, indicating a broad-based recovery in the sector.</span></p> <p><span style="font-size:14px">Consumer durables have demonstrated particular resilience, recording a 6.5 percent year-on-year growth in September. </span></p> <p><span style="font-size:14px">Following three months of decline, consumer non-durables witnessed a modest recovery with 2 percent growth, primarily attributed to increasing rural demand. </span></p> <p><span style="font-size:14px">This upturn in non-durables is especially significant as it reflects strengthening consumption patterns in rural areas and their positive impact on the fast-moving consumer goods (FMCG) sector.</span></p> <p><span style="font-size:14px">However, the overall industrial growth has shown signs of moderation. The Index of Industrial Production (IIP) registered a growth of 2.6 percent year-on-year in the second quarter of FY25, considerably lower than the previous quarter's 6.9 percent and the robust 7.8 percent recorded in Q2FY24. </span></p> <p><span style="font-size:14px">The cumulative IIP growth for the first half of FY25 stands at 4.0 percent, down from 6.2 percent in the corresponding period last year.</span></p> <p><span style="font-size:14px">Despite the deceleration in industrial growth, the outlook remains positive, with rural demand and government spending expected to be key growth catalysts in the coming months. </span></p> <p><span style="font-size:14px">These factors will be crucial in determining India's economic trajectory for the remainder of the fiscal year 2024-25.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39917 https://knnindia.co.in/news/newsdetails/economy/rural-growth-govt-spending-to-drive-indias-economy-in-h2fy25-icici-bank 2024-11-14 17:01:54 knnindia.co.in