The strengthening in growth momentum was led by the favourable impact of the departure of monsoon on sectors like mining and electricity, healthy demand during the festive season that boosted vehicle registrations, fuel consumption, air travel and the surge in exports, said the report by credit rating agency ICRA.

“The early data for November appears upbeat, with a base-effect led rise in electricity demand growth and a continued festive boost in vehicle registrations,” the report mentioned.

The economic activity growth was led by an improvement in 10 of the 16 indicators. The ICRA 'Business Activity Monitor' surged by 9.9 per cent month-on-month in October, higher than 6.5 per cent growth seen in October 2023, partly led by an early onset of the festive season.

This is the highest sequential growth in any month since March 2023 (+10.5 per cent).

As per the Vahan data, the average daily vehicle registrations jumped to 108.4k units during November 1-18, surpassing the full-month average of 96.4k units (previous peak) as well as 92.0k units, respectively, in November 2023 and October 2024.

This was majorly boosted by the festive season demand, that ended on November 13.

ICRA believes that the daily average registrations will normalise by the end of the month.

Besides, electricity demand growth improved to 3.2 per cent during November 1-17 from 1.1 per cent in October, partly supported by a favourable base.

Additionally, the growth in non-oil exports surged to 25.6 per cent from 6.8 per cent in September 2024, led by sectors such as electronic goods, engineering goods, chemicals and readymade garments.

“These trends reinforce the credits rating’s expectations of a pick-up in the GDP growth in Q3 FY2025 as compared to H1 FY2025,” said the report.