New Delhi, March 2: The MahaKumbh mega event, which concluded recently, will significantly boost consumption demand in the fourth quarter of the 2025 financial year, benefiting key sectors such as trade, hospitality, and transport, according to a report by CareEdge.
The report also highlighted that economic growth is projected to pick up in the coming quarters, supported by factors like a rebound in rural demand, tax reductions, policy rate cuts, falling food inflation, and an increase in public capital expenditure.
"The MahaKumbh celebrations in Q4 will likely further stimulate consumption demand, positively impacting sectors like trade, hotels, and transport," the report stated.
Recent data reveals a rise in private consumption demand in rural areas, as indicated by GDP figures released last Friday. India’s GDP growth for the third quarter reached 6.2%, marking a noticeable improvement from the 5.6% growth recorded in Q2 FY25.
Sector-wise, agriculture continued to show recovery, growing by 5.6% year-on-year in Q3, up from 4.1% in the previous quarter. This growth was supported by strong Kharif crop output and healthy Rabi sowing.
The services sector also maintained robust growth, expanding by 7.4% YoY in Q3, surpassing the 7.2% growth seen in Q2. This growth was driven by a notable rise in trade, hotels, transport, communication, and broadcasting services, which saw an increase from 6.1% in Q2 to 6.7% in Q3.
Looking ahead, the report anticipates a further strengthening of consumption demand as inflationary pressures ease and the effects of tax cuts begin to take hold.
