The real private consumption spending grew by 5.9% in Q4FY25, a marginal dip from 6.2% growth recorded in Q4FY24

Private consumption in the Indian economy moderated slightly in the fourth quarter of FY25, according to a recent report by Bank of Baroda.

The report added that the real private consumption spending grew by 5.9 per cent in Q4FY25, a marginal dip from 6.2 per cent growth recorded in Q4FY24.

Meanwhile, government consumption also registered a contraction, declining by 1.8 per cent in Q4FY25 compared to a strong 6.6 per cent rise in the same quarter last year.

The report said "Private consumption spending in Q4 (real) moderated marginally to 5.9 per cent in Q4FY25 from 6.2 per cent in Q4FY24; while government consumption registered contraction" As of May 2025, the report highlighted that the consumption demand in the country presents a mixed picture, based on high-frequency indicators.

It stated that while non-oil-non-gold and electronic imports have shown improvement, indicating positive momentum in select segments, key indicators such as auto sales, steel consumption, and power demand have witnessed a slower pace of growth.

On the agriculture front, the report highlighted that the government has announced higher MSP for kharif crops. The focus is now shifting towards the progress of the monsoon season, which will play a critical role in rural consumption and overall economic momentum.

On the fiscal side, the Centre successfully met its fiscal deficit target of 4.8 per cent of GDP for FY25.