Bank of Baroda Projects India's Q4FY26 GDP Growth at 7.3%
India's Q4FY26 GDP growth to hit 7.3%: Bank of Baroda report
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India's GDP is projected to grow by 7.3% in Q4FY26, up from 7.1% in Q4FY25, driven by strong performance in the utilities and services sectors. However, agriculture, mining, and manufacturing are expected to see slower growth due to external pressures.
- 01Utilities and construction are the primary growth drivers, with utilities expected to see a 2.7% rise in growth.
- 02The services sector is projected to grow by 9.1%, significantly up from 6.8% in Q4FY25.
- 03Agriculture growth is anticipated to slow to 2.1%, down from 3.8% in the previous year.
- 04Bank credit growth averaged 14.3% in Q1 2026, compared to 11.2% in Q4FY25.
- 05The report forecasts FY27 growth to be lower, at 6.5-6.8%, due to the impact of the US-Iran war.
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According to a report by Bank of Baroda, India's real GDP growth for Q4FY26 is expected to reach 7.3%, an increase from 7.1% in Q4FY25. This growth is primarily attributed to stronger performance in the utilities and services sectors, with utilities projected to grow by 2.7%. The services sector is also expected to show robust growth at 9.1%, up from 6.8% the previous year. However, other sectors such as agriculture, mining, and manufacturing are projected to experience slower growth, with agriculture expected to decline to 2.1% and mining to 1.7%. Additionally, the report highlights increased bank credit growth, averaging 14.3% in early 2026. Looking ahead, the report predicts a slowdown in FY27 growth to 6.5-6.8%, influenced by external factors such as the US-Iran conflict and rising fuel prices.
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The projected GDP growth may influence job creation and investment opportunities in the utilities and services sectors.
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