India’s economy clearly did better than what the earlier data for FY23 and FY24 suggested. Even in the third quarter of FY25, the gross domestic product (GDP) growth has been reasonably good at 6.2% as it comes on a high base of 9.5%. But there is no denying that the economy has lost considerable momentum and will grow much below its potential in the current year and probably next year too. In fact, the headwinds from the Trump administration measures in the area of trade and tariffs could seriously impact business at home. The economy is now expected to clock in a growth of 6.5% for FY25, implying that the March quarter must pull off a number of 7.6% year-on-year (y-o-y). That is a tall order even allowing for the Maha Kumbh factor. Even if growth hits 6.5%, it would be a four-year low.

That said, a closer look at the Q3 numbers suggest key segments of the economy are still not pulling their weight. Both........

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