Chennai, Feb 23 (IANS): Bank of Baroda (BOB) has predicted that India’s GDP in Q3 FY24 will grow at 6.4 per cent, with subdued growth in industrial and agricultural sectors. Economist Jahnavi Prabhakar stated that the service sector is expected to drive growth, despite slower overall economic growth compared to Q2.
Prabhakar mentioned that economic growth in Q3 FY24 is uneven across sectors, with some showing better growth than others. The full-year estimate is 6.8 per cent, with growth projected to remain at a similar level of 6.75-6.8 per cent for FY25.
The IMF forecasts the Indian economy to grow by 6.7 per cent in the current fiscal year, with estimates for FY24 and FY25 at 6.5 per cent. Meanwhile, the World Bank expects growth of 6.3 per cent in FY24 and 6.4 per cent in FY25, driven by domestic demand, infrastructure spending, and private sector credit growth.
In contrast to these projections, the NSO advance estimates suggest the economy will grow by 7.3 per cent in the current fiscal year. The RBI has projected growth at 7 per cent for FY24, with Q3FY24 and Q4FY24 growth rates at 6.5 per cent and 6 per cent respectively. For FY25, growth is expected to be 7 per cent, with potential risks from geopolitical tensions and financial market volatility.
Credit rating agency ICRA recently stated that India’s GDP will grow at 6 per cent in Q3 FY2024, down from 7.6 per cent in Q2 FY2024. Despite varying forecasts from different sources, the overall outlook indicates a steady but slightly slower growth trajectory for the Indian economy in the coming quarters.
