BoB forecasts GDP slowdown in Q3

Chennai: Government-owned mortgage lender Bank of Baroda (BOB) on Friday predicted India’s gross domestic product (GDP) in Q3 FY24 to grow at 6.4 per cent on the back of subdued growth in industrial and agricultural sectors.

“For Q3FY24, the economy is projected to grow at a slower pace by 6.4 per cent against a growth of 7.6 per cent in Q2FY24 led by subdued growth in agriculture and industry sector. Service sector is expected to lift up growth,” Jahnavi Prabhakar, Economist said in a report.

According to Prabhakar, economic growth in Q3 FY24 though is a tad slower than Q2, it is uneven across sectors with a few of them registering better growth than others.

For the full year the estimate is 6.8 per cent. Going ahead for FY25 growth will be at a similar level of 6.75-6.8 per cent, Prabhakar said. According to the IMF, the Indian economy is projected to grow by 6.7 per cent for the current fiscal, upgrading the estimates by 40bps from its previous forecast in October 2023.