According to the April review, domestic manufacturing is also expected to receive stronger external support in the upcoming months as consumer sentiment from Europe and the US builds.
The number of organisations in the US and Europe focusing on re-industrialisation has increased, with many focusing on improving supply chain resilience, it said.
“This can benefit India’s manufacturing firms as part of the ‘China Plus One’ strategy. The EXIM Bank of India has forecasted that merchandise exports will post double-digit growth in Q1 of FY25,” the April review said.
Closing on a high, India estimated a new benchmark at Rs 778.21 billion from the total merchandise and services trade in FY24.
In terms of domestic indicators, the ministry alluded to high-frequency indicators like GST collections, e-way bills, electronic toll collections, the sale of vehicles, purchasing managers’ indices, and the value and number of digital transactions to suggest that the first quarter of FY25 will grow along the economic momentum seen in FY24.
Uncertainty from geopolitical tensions and volatility in global commodity prices, like petroleum, are tailwinds that continue to remain on the ministry’s radar.