ICRA Projects Marginal Slowdown in Agri-GVA Growth for FY 2025-26

The rating agency ICRA has released a report projecting a modest slowdown in agricultural Gross Value Added (GVA) growth to 4.5% for the first quarter of the current financial year 2025-26, down from 5.4% in the previous quarter. This adjustment reflects a broader economic impact on rural incomes, consumption, and overall growth.

Agricultural GVA growth is crucial in managing food inflation and aligning with monetary policy, especially as it indicates a robust agricultural output. The projected figures may also attract more investments into the agricultural and rural sectors, boosting food security and export potential, despite the slight dip.

Despite this moderation, the outlook remains promising with robust output expected from rabi and most summer crops. For FY2026, ICRA anticipates agricultural, forestry, and fishing GVA growth to ease to between 3.5% and 4.0%, assuming a healthy Kharif season. Sowing trends show healthy growth for moong, rice, and maize, with some lag in soybean, arhar, and urad.

(With inputs from agencies.)