ICRA sees India's Q3 GDP growth at 7.2%
India's economic growth is expected to slow down a bit, with ICRA predicting a 7.2% GDP rise for the third quarter of FY2025-26—down from 8.2% last quarter and an 8.0% average in the first half of the year.
The dip comes as services and agriculture lose some steam, even though industry is picking up pace.
Services and agriculture slow down, but industry picks up
Services grew by 7.8%, which is slower than before, and agriculture managed just 3%.
But industry actually did better, jumping to an 8.3% growth rate—a six-quarter high.
ICRA's chief economist Aditi Nayar says the sequential slowdown was due to an unfavorable base effect, contraction in Government capital spending, subdued state government revenue expenditure, and weak merchandise exports.
Full-year growth forecast raised to 7.3%
ICRA recently upped its full-year growth forecast to 7.3%, citing healthy domestic demand and GST rationalization to help out.
We'll know more when official Q3 numbers drop—so keep an eye out for updates!