BOB Report: Third quarter's growth rate might reach 6.4%; GDP data will be released on February 29

According to forecasts, the nation's economy will grow by 6.4% during the third quarter of the current fiscal year. The industries that will contribute the most to GDP are manufacturing and construction, per the Bank of Baroda (BoB) report. On February 29, the government will make GDP statistics public. A global recession is still a possibility, the report claims, because of strict monetary policy and other issues. These could have an impact on world development. Because of its internal resilience, the Indian GDP is in a better position than that of other major economies. The GDP may expand at a 6.8% annual rate in the current fiscal year. In 2024–2025, it might be 6.75–6.8 per cent. However, unfavourable international circumstances could have an impact on exports.

According to the report, there will be slow growth in the agriculture and industry sectors. Rapid growth is expected in the service sector. While the growth rate of the industrial sector may be 8 per cent, the growth rate of mining and manufacturing maybe six and 8.6 per cent. However, it may be less as compared to the second quarter. Rural demand is likely to slow down due to a slowdown in sales of tractors and two-wheelers. However, the increase in e-way bill generation in January will provide some help to the services.

Bank of Baroda said in its report, that the growth rate of the construction sector may be better in the third quarter of the current financial year. During this period, the service sector can grow at a pace of 6.7 per cent. Its growth rate in the second quarter was 5.8 per cent. The growth rate of the business, hotel and transportation sector during the third quarter is estimated to be 6.4 per cent. With a good situation of credit distribution, the financial sector can grow at the rate of 6.5 per cent.