New Delhi, March 18 -- While corporate performance remains below par, key factors such as recovering rural demand, lower income tax burden, falling food inflation, expected rate cuts, and increased public spending are likely to drive economic activity in the coming months according to a report by CareEdge Ratings.

However, external risks will require close monitoring, the global economy is facing significant turbulence due to an ongoing tariff war, causing fluctuations in growth, inflation, and financial markets, however, despite these challenges, Indian firms have shown improvement in sales and profitability in Q3 FY25.

The report highlights three major risks that could arise due to the global tariff war and its repercussions. Trade ta...