India's GDP Growth Likely at 6.7% in Q1 FY2026, Says ICRA

India's GDP growth projection is at 6.7 per cent in the first quarter of the current financial year, which is higher than the RBI estimates of 6.5 per cent, according to rating agency ICRA.

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The agency noted that however, GDP expansion has eased from 7.4 per cent in Q4 FY2025, while it outpaces the Monetary Policy Committee's (MPC's) recent forecast of 6.5 per cent.

The rating agency also said the growth in gross value added (GVA) is expected to ease to 6.4 per cent in Q1 FY2026 from 6.8 per cent in Q4 FY2025.

The slowdown in the industrial sector and agriculture is likely to offset the strong performance of the services sector.

Industrial growth is estimated to fall to 4.0 per cent in Q1 FY2026 from 6.5 per cent in the previous quarter, while agriculture growth is projected at 4.5 per cent compared with 5.4 per cent earlier. On the other hand, services are set to rise to an eight-quarter high of 8.3 per cent, up from 7.3 per cent.