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Dec. 2, New Delhi, India: According to a Bank of Baroda analysis, the agricultural industry is anticipated to continue seeing strong growth in the second half of FY25, propelled by good monsoon conditions, increased reservoir levels, and robust Rabi sowing.

According to the analysis, good monsoon conditions and rising reservoir levels are projected to boost agricultural earnings, boost rural demand, and improve the outlook for the economy.

It said, “Agriculture growth expected to clock robust growth in the same period (Second half of FY25)”

The National Oceanic and Atmospheric Administration (NOAA) has a 57% possibility of La Nina conditions from October to December, which might last into January and March and could lead to a warmer winter, the research said.

A natural climatic phenomena known as La Nina happens when the ocean surface cools in the eastern and central equatorial Pacific. It has an impact on rainfall patterns worldwide.

La Nina is widely seen as beneficial for India since it often results in more monsoon rainfall; in other words, it typically provides greater monsoon activity as opposed to El Nino, which is linked to lower rainfall in India.

Since the pandemic, agriculture has performed consistently; in Q2 FY25, it grew by 3.5%, which is a significant increase over the 1.7% growth in the same quarter of the previous fiscal year. When other economic sectors encounter difficulties, this resilience emerges.

According to official government figures, slowdown in the manufacturing sector and heavy rains that were dispersed unevenly caused India’s GDP growth in Q2 FY25 to fall to a seven-quarter low.

Key businesses including mining, energy, manufacturing, and construction saw weak development during this time due to the negative effects of these rains.

The research predicted a robust rebound in the second half of the fiscal year, notwithstanding the downturn. Economic momentum is anticipated to be driven by elements including robust investment flows, a pick-up in capital expenditure, and higher government spending. Furthermore, total growth is probably going to be supported by a resurgence in both urban and rural consumer demand.

It said, “A

Government spending, a rise in capital expenditures, robust investment, and a resurgence in both urban and rural consumer demand are all projected to contribute to a robust recovery in H2.

It is anticipated that a robust agricultural sector and focused economic policies would enable India to overcome the difficulties of the second quarter and continue on a path of steady development in the second half of FY25.