New Delhi, March 3 -- India's economy is projected to experience a significant boost in Q4FY25, driven by sustained government spending and capital expenditure (capex), along with increased consumption spurred by the Maha Kumbh and the wedding season, according to a report by Union Bank of India.

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 key risks including ongoing...