ICRA pegs India's April-June GDP at 7% amid services slowdown

Business Aug 18, 2026

ICRA estimated India's GDP growth at 7% in the April-June quarter, which is slower than last quarter's 7.8% and actually the lowest in a year.

The main reason? The services sector lost some steam, even though industries and agriculture kept moving forward.

ICRA expects growth to ease FY27

ICRA projected industrial growth at 7.7%, agriculture at 4%, and services at 7.9% in the June quarter.

Still, confidence in the services sector is at its lowest in five years, thanks to rising wage costs and global tensions.

Looking ahead, ICRA expects overall growth to ease further in FY27 (2026-27), but high inflation could push up nominal numbers on paper.