Agri crisis likely to drag FY15 GDP below 7.4% target

Fiscal year 2014-15 gross domestic product (GDP) growth rate, due at 5.30 pm this evening, may came in slightly lower than the government's advance estimate of 7.4 percent.

Sources have told CNBC-TV18 that economic output took a hit in the fourth quarter from the ongoing agriculture crisis. This may result in fourth quarter GDP coming in at 7.2-7.3 percent.

After clocking growth of 6.5 percent, 8.2 percent and 7.5 percent in the first three quarters, India needs to clock growth of 7.4 percent in the fourth, if it has meet its yearly growth target of 7.4 percent.

Government sources said they had witnessed a stark slowdown in rural consumption, which may reflect in agriculture output, which contributes about 15 percent to India's GDP.