Indian Economy Is Expected To Grow At 6.7 per cent In April-June Period Of Current Fiscal: Icra
India’s economy grew 7.4 per cent in the March quarter of FY25, while the official data for first quarter of this fiscal (FY26 Q1) GDP has been scheduled to be released on August 29
New Delhi: Beating the growth forecast of Reserve Bank of India (RBI), leading domestic rating agency Icra on Tuesday said that on the back of higher government capital expenditure and exports, Indian economy is expected to grow at 6.7 per cent in April-June period of current fiscal, which is higher than 6.5 per cent a year ago.
India’s economy grew 7.4 per cent in the March quarter of FY25, while the official data for first quarter of this fiscal (FY26 Q1) GDP has been scheduled to be released on August 29. This projection also outpaces the RBI’s Monetary Policy Committee's (MPC's) forecast of 6.5 per cent growth in the June quarter.
“Investment activity held up in Q1 FY '26 was boosted by the front-loading of government capex. Although, this admittedly came on a low base amidst the heightened uncertainty owing to geopolitical tensions and tariff-related developments,” said Icra chief economist Aditi Nayar.
“Benefitting from robust government capital as well as revenue spending, upfront exports to some geographies and nascent signals of improved consumption, the pace of expansion in economic activity in Q1 FY2026 is estimated at 6.7 per cent,” Nayar added.
Based on the CGA data, the government’s gross capital expenditure spiked 52 per cent Y-o-Y to Rs 2.8 lakh crore in June quarter. Further, the value of new project announcements nearly doubled to Rs 5.8 lakh crore from Rs 3 lakh crore in Q1 FY2025. She, however, cautioned against tapering off of GDP growth in the subsequent quarter amid continuing tariff-induced uncertainty for exports and private capex and this will limit India’s GDP expansion at 6 per cent in current fiscal.
