New Delhi, May 16
The Indian economy is expected to grow at 6.8-7 per cent in the fourth quarter of the financial year 2024-25, driven by the agriculture sector, according to a Bank of Baroda report released on Friday.
For the full financial year, the estimate has been pegged at 6.2-6.4 per cent with the report stating that India’s economy continues to be better off than its global counterparts on the back of strong macroeconomic fundamentals.
Going ahead for FY26, growth will be at a similar level of 6.4-6.6 per cent with brighter prospects supported by monetary easing, lower inflation, sound domestic demand aided by a budgetary push and sustained capex spending, according to the report.
However, any geopolitical conflict and global tariff imposition can have an adverse impact on this optimism, it points out.
The report states that robust agriculture growth is expected at 7.7 per cent in Q4FY25. This will be much higher growth compared with 0.9 per cent growth noted in Q4FY24. This has been on the back of the record foodgrain production as has been noted in the 2nd advance estimates which includes estimates for both kharif and rabi crops.
Growth in Q4, though higher than Q3, is, however, uneven across sectors with a few of them registering better growth than others.