• Notification Date: 19-02-2025
• Notification No: N/A

India's economy appears strong with 6.4% growth in Q3 FY25, according to ICRA; Bank of Baroda predicts 6.6%

India's economy is estimated to have expanded 6.4% in the third quarter of FY25, as per ICRA, due to strong government expenditure, a rebound in exports, and healthy farm production.
Bank of Baroda's estimate is marginally higher at 6.6%, both of these estimates prior to the release of official GDP figures next week.

The third quarter performance is a bounce back from the subdued 5.4% growth in Q2, largely on account of weaker manufacturing performance. The economy was, however, supported by higher government spending on capital and revenue sides, a pick-up in services exports, and a rebound in merchandise exports.
Also, the good kharif crop production helped to support rural sentiment.

ICRA has predicted a growth of 6.6% in GVA, and Bank of Baroda is also expecting 6.2%.
Manufacturing will post weak growth, as predicted by ICRA at 5%, while Bank of Baroda sees growth at 6%. On the festival season front, sectors oriented towards consumption recorded an uptick, with the urban consumer sentiment having slightly slipped.

On a future horizon, both agencies forecast improved Q4 growth powered by consumption and government expenditure.