India’s GDP Growth in Q4 FY24-25 Looks Optimistic - News

India’s economy is expected to grow by 6.8 to 7 percent in the fourth quarter of FY25, mainly due to strong performance in the agriculture sector, according to a recent report by Bank of Baroda. 

For the complete financial year, GDP growth is projected between 6.2 to 6.4 percent, with India continuing to perform better than many global counterparts, as a result of strong macroeconomic fundamentals.

The agriculture sector is set to grow by 7.7 percent in Q4 FY25, a sharp rise from 0.9 percent recorded during the same period a year ago. This growth is a result of record foodgrain production in the kharif and rabi crops. 

In the industrial sector, mining is expected to rise by 1.5 percent as compared to 0.8 percent in the corresponding quarter of FY24. Manufacturing may slow to 1.8 percent from 11.3 percent in the previous year as a result of weaker corporate profits and a high base. 

Despite lower commodity prices, sectors like iron and steel, capital goods, and textiles faced reduced margins. The electricity sector is likely to grow at 5.5 percent, down from 8.8 percent in Q4 FY24.

Construction is expected to stay strong in terms of growth, backed by higher steel and cement output and continued government spending. The trade, hotels, and transport sector is expected to grow by 6.4 percent in Q4 FY25. Financial services growth could dip to 6.6 percent, as compared to 9 percent in FY24, due to a decline in credit growth.

Looking to FY26, GDP is expected to rise by 6.4–6.6 percent, supported by steady consumption, favorable monsoons, lower inflation, and potential trade deals. However, the report cautioned that geopolitical tensions and global tariffs remain key challenges.