Private consumption in the Indian economy saw a slight decrease in the fourth quarter of FY25, as per a recent report by Bank of Baroda. Real private consumption spending grew by 5.9% in Q4FY25, down from 6.2% in Q4FY24. On the other hand, government consumption declined by 1.8% in Q4FY25 compared to a 6.6% increase in the same quarter last year.
The report noted that as of May 2025, consumption demand in India shows a mixed outlook based on various high-frequency indicators. While certain segments like non-oil-non-gold and electronic imports have improved, indicating positive momentum, key areas such as auto sales, steel consumption, and power demand have experienced slower growth.
Source: BusinessLine
