GDP growth for Q4 FY24 came in at 7.8% YoY. However, GDP growth was lifted by higher net indirect tax collections in this quarter. At 6.3%, GVA growth was much closer to market expectations. Growth was supported by strong investment activity while the consumption growth remained subdued. On the production side of the economy, GVA growth was led by the services and industrial sectors while activity in the agricultural sector remained weak. The continued rapid pace of growth underscores India’s generally favourable macro fundamentals and dampens any possibility of a dovish change in the upcoming monetary policy meeting. Growth outlook for FY25 generally leans towards positive, however, factors like missing support from the low GDP deflator, extreme weather events, uneven recovery in the domestic labour market and uncertainties on the geopolitical front are likely to weigh on growth in FY25.