States' Q4 borrowing to rise 18% after Q2 growth slump
Mint New Delhi|January 04, 2025
Capex boost likely as West Bengal, Maharashtra, Karnataka lead ₹4.73 tn borrowing plan
Rhik Kundu

State governments appear to be priming themselves for a significant capital expenditure (capex) push in the current quarter, offering hope of a drive towards reviving the pace of India's economic growth after a succession of slow-growing quarters.

States, led by West Bengal, Maharashtra and Karnataka, are set to raise their market borrowings by about 18% year-on-year in the fourth quarter of 2024-25 (Q4 FY25).

According to latest data released by the Reserve Bank of India (RBI), total market borrowing by states in Q4 FY25 may reach ₹4.73 trillion, up from gross issuances of ₹4 trillion a year ago.

West Bengal has indicated it will borrow ₹58,000 crore, the highest, followed by Maharashtra (₹50,000 crore) and Karnataka (₹48,000 crore).

These states, along with Uttar Pradesh, Tamil Nadu, and Rajasthan, account for a significant share of the total market borrowings projected for the quarter.

The rise in state borrowings offers hope of a broader economic recovery, following a notable slowdown in gross domestic product growth in the past couple of quarters.

At 5.4%, GDP growth in Q2 FY25 marked its slowest pace in nearly two years. Growth in Q1 FY25 stood at 6.7%. In comparison, FY24 saw real GDP growth at 8.2%.

هذه القصة مأخوذة من طبعة January 04, 2025 من Mint New Delhi.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة January 04, 2025 من Mint New Delhi.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

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