ICRA sees India's GDP growth at 6.7% in Q1FY26
ICRA predicts India's GDP will rise by 6.7% in the first quarter of fiscal year 2025-26—slightly above the RBI's 6.5% estimate, though a bit slower than last quarter's pace.
Despite global and local challenges, this shows the economy is holding up well.
Services sector to jump by 8.3%
The services sector is expected to jump by 8.3%, making up for slower growth in industry (4%) and agriculture (4.5%).
Big government investments are helping drive this momentum—central capital spending soared 52% to ₹2.8 trillion, with states also boosting their budgets.
Urban spending could get a boost
Government tax revenues bounced back with an 11.3% rise in Government of India's indirect taxes, while new project announcements nearly doubled to ₹5.8 trillion.
With GST tweaks and improved transmission of monetary easing, urban spending could get another lift—and keep India's growth story rolling into next year.