Resilience Amidst Global Headwinds

Despite ongoing global geopolitical uncertainties and disruptions in trade and supply chains, the Indian economy has demonstrated remarkable resilience. India has effectively navigated these challenges, maintaining a steady growth trajectory.

The percentage of economic indicators displaying acceleration has risen to 74% in Q3 FY25, compared to 71% in Q2 FY25. A robust rural economy is playing a crucial role in reinforcing stability and sustaining growth across various sectors. Consistent rural agriculture wage growth, coupled with increased domestic tractor sales and a positive trend in rabi crop sowing, further contribute to this positive momentum. These factors collectively highlight the strengthening foundations of the Indian economy.(SBI EcoWrap Feb25)

Capital expenditure (CAPEX) is exhibiting improvement in Q3 FY25. While the majority of states' CAPEX as a percentage of Budgeted Expenditure (BE) was lower earlier in FY25, there's a noticeable upward momentum in Q3 FY25, which is a positive sign for future development. Furthermore, the Index of Industrial Production (IIP) manufacturing growth has increased from 3.3% in Q2 FY25 to 4.3% in Q3 FY25.

Consistent rural agriculture wage growth, coupled with increased domestic tractor sales and improved Rabi crop sowing, underscores the health and stability of the rural economy. Although the majority of states' Capital Expenditure (CAPEX) as a percentage of Budgeted Expenditure (BE) is lower in FY25, there is a notable upward momentum observed in Q3 FY25. This positive shift in CAPEX trends signals potential for further economic development and growth in the coming periods. 

In Q3FY25, around 4000 listed corporates reported a revenue growth of 6.2%, with EBIDTA and profit after tax (PAT) increasing by approximately 11% and 12% respectively compared to Q3FY24.​

Excluding the BFSI sector, over 3400 listed entities saw revenue and PAT growth of 5% and 9% respectively in the same period.​

Notably, these corporates experienced a 5% EBIDTA growth in Q3FY25, reversing the negative EBIDTA growth seen in the previous two quarters.​

At an aggregate level, the EBIDTA margin improved by 44 basis points to 14.84% from 14.4% in Q2FY25.​

Additionally, Corporate GVA grew by around 300 basis points year-on-year to 9.55% in Q3FY25.

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