Economic growth is widely expected to be somewhere around the Reserve Bank of India’s projection of a four-quarter low of 6.5 per cent in the first quarter (Q1) of 2025-26 (FY26).
To set the background, the gross domestic product (GDP) growth in FY25 was not as buoyant as it was in the preceding year. Even then, the economy did recover in Q4 due to a pickup in an otherwise lacklustre secondary sector. (Chart 1)
Investment growth provided a boost to the Q4 recovery, even as demand

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