India’s economy is estimated to grow between 7% and 7.2% in the first quarter of fiscal year 2026-27, supported by strong growth in manufacturing and services, according to a Bank of Baroda report.
The estimate exceeds the 6.8% GDP growth India recorded in the corresponding quarter of the previous fiscal year.
Bank of Baroda said stronger manufacturing, electricity and construction activity, supported by steady government capital expenditure and healthy credit and deposit growth, would drive the economy.
The report projected industrial growth at 6.8%, with manufacturing expected to expand by 7.8%. It forecast 7% growth in electricity and 6% growth in construction.
The services sector could grow by 8%, driven largely by an expected 9.2% expansion in financial, real estate and professional services.
However, the report projected agricultural growth at 3.5%, citing a delayed monsoon and heatwave conditions.
“Steady improvement in government capex along with healthy credit and deposit growth will push growth higher. However, delayed monsoon and aggravated heatwave conditions will pull agriculture growth lower in this quarter,” the report said.
Bank of Baroda expects the Indian economy to grow between 6.6% and 6.8% in the full fiscal year, supported by broad-based growth, stable inflation and currency conditions.
