New Delhi, Feb 28 : The recently concluded Maha Kumbh is expected to contribute significantly to India's economic growth, helping the country achieve its target of 6.5 per cent gross domestic product (GDP) in the financial year 2024-25, Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Friday.

During a media briefing on the GDP numbers for Q3 FY25, Nageswaran stated that while it is difficult to quantify the exact impact, the event is likely to provide a notable boost to consumption expenditure in the March quarter.

"With an estimated 50-60 crore people visiting Prayagraj for the Maha Kumbh, the surge in spending could positively influence economic activity," he added.

India's GDP growth picked up to 6.2 per cent in the third quarter (Q3) of FY25, up from a revised 5.6 per cent in the previous quarter.

The improvement was driven by higher rural consumption, aided by a favourable monsoon, and increased government spending, according to data released by the government on February 28.

Nageswaran noted that the rebound in GDP growth in Q3 reinforces India's position as the fastest-growing major economy during the October-December period.

He also mentioned that the projected GDP growth of 7.6 per cent in the fourth quarter (Q4) of FY25 appears achievable, considering the current economic momentum.

Regarding stock market fluctuations, the CEA attributed the volatility to profit-booking and foreign portfolio investor (FPI) outflows.

He stressed that the Indian stock market is mirroring global trends, particularly the downturn in US markets.

'The India stock market went almost parabolic between July 2024 and October 2024, and those parabolic gains are now currently being unwound in the marketplace,' he said.

'As we speak today, we notice that the US stock market is significantly down, and the Indian market today has reflected that as well,' said CEA Nageswaran.

However, he pointed out that seasoned market experts, such as Chris Wood from Jefferies, continue to be optimistic about India's long-term growth potential.

Meanwhile, India's fiscal deficit reached 74.5 per cent of the annual target by the end of January 2025, as per data from the Controller General of Accounts (CGA).

In absolute terms, the fiscal deficit stood at Rs 11.69 lakh crore during the April-January period of FY25.

/IANS