New Delhi, 16 May (IANS). The growth rate of India’s economy may be between 6.8–7 percent in the fourth quarter of FY 2024-25. The reason for this is to perform well for the agriculture sector. This information was given in the report of Bank of Baroda released on Friday.
The growth rate for the entire financial year is estimated to be between 6.2 percent to 6.4 percent.
The report stated that India’s economy will continue to perform well compared to its global counterparts. The reason for this is to be a strong basis.
According to the report, the growth rate in FY 2026 can remain at the same level of 6.4-6.6 percent.
However, a geopolitical conflict and global tariffs can have a negative impact on estimates.
The report said that a strong growth of 7.7 percent in the agriculture sector is expected in the fourth quarter of FY 2025. This will increase significantly higher than an increase of 0.9 percent recorded in the fourth quarter of FY 2024. The reason for this is the record increase in food production.
The growth rate in the fourth quarter of FY 25 is estimated to be more than the third quarter. There may be inequality in the growth of sectors. Some sectors can perform very well. At the same time, the performance of some sectors may remain soft.
The growth rate of the mining sector is estimated to be 1.5 percent in the fourth quarter of FY 25, which was 0.8 percent in the same period last year. On the other hand, the increase in manufacturing sector is likely to be reduced to 1.8 percent. It was 11.3 percent in the fourth quarter of FY 24. This is due to partially adverse base and weak corporate income.
The growth rate of the power sector is estimated to be 5.5 percent in the fourth quarter of FY 25, which was 8.8 percent in the same period last year.
The report said that due to good monsoon in FY 26, there may be a boom in rural demand.
Apart from this, consumer consumption may increase due to increase in income tax exemption in new tax regime.
According to the report, the decreasing inflation in FY 26 will boost the growth rate and the low price of commodity will support the growth rate.
-IANS
ABS/
