New Delhi, March 2 -- India's economy is expected to see a boost in Q4FY25, supported by a sustained increase in government spending and capital expenditure (Capex), alongside a pickup in consumption driven by the Maha-Kumbh and wedding season, according to a report by Union Bank of India.

The report added that the Reserve Bank of India (RBI) has continued to support growth with rate cuts, liquidity provisions, and regulatory adjustments, including the reversal of macroprudential tightening.

These measures, combined with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Micro, Small & Medium Enterprises (MSME) scheme, are set to spur credit growth in the coming months.

However, the report pointed out the key risk...