<p>New Delhi: India's GDP is expected to grow by 6.7 per cent in the first quarter of the current financial year on the back of upfronted government spending and jump in exports to some regions, rating agency ICRA said on Tuesday.</p>.<p>ICRA’s growth projection is higher than the Reserve Bank of India's recent forecast of 6.5 per cent for the quarter. While on a year-on-year basis it is expected to accelerate sequentially it will be lower.</p>.<p>India’s gross domestic product (GDP) growth stood at 6.5 per cent in the first quarter of 2024-25. In January-March 2025 quarter the GDP growth was 7.4 per cent, as per the latest National Statistics Office (NSO) data.</p>.<p>The official data for the April-June quarter is scheduled to be released on August 29.</p>.<p>As per ICRA analysis, services sector growth is likely to accelerate to an eight-quarter high of 8.3 per cent in April-June period. However, both industrial and agriculture sector growth is likely to decelerate.</p>.India's GDP could slow down to 6% in FY26 if US levies 50% tariff: Moody's.<p>Agriculture sector growth is estimated to decline to 4.5 per cent in April-June period from 5.4 per cent expansion recorded in the previous quarter, while industrial sector growth may fall to 4 per cent in Q1 of 2025-26 from 6.5 per cent recorded in Q4 of 2024-25.</p>.<p>ICRA chief economist Aditi Nayar said investment activities in the first quarter of the current fiscal was boosted by the front-loading of government capital expenditure (capex) amid heightened uncertainty owing to geopolitical tensions and tariff-related developments.</p>.<p>“Benefitting from robust Government capital as well as revenue spending, upfronted 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%,” she said.</p>.<p>However, Nayar noted that the growth was likely to decelerate in the remaining three quarters of the current fiscal.</p>.<p>"Amidst continuing tariff-induced uncertainty for exports and private capex, we fear that growth will taper off in the subsequent quarters, which would limit the expansion in India’s GDP to 6.0% in FY2026," she said.</p>.<p>As per Controller General of Accounts (CGA) data, the government of India’s gross capital expenditure spiked by 52% year-on-year to Rs 2.8 lakh crore in the quarter ended June 2025. The aggregate capital outlay and net lending of 24 state governments, for which the CGA data is available, stood at Rs 1.1 lakh crore in April-June quarter, which is 23% higher when compared with the corresponding period of the last year.</p>
<p>New Delhi: India's GDP is expected to grow by 6.7 per cent in the first quarter of the current financial year on the back of upfronted government spending and jump in exports to some regions, rating agency ICRA said on Tuesday.</p>.<p>ICRA’s growth projection is higher than the Reserve Bank of India's recent forecast of 6.5 per cent for the quarter. While on a year-on-year basis it is expected to accelerate sequentially it will be lower.</p>.<p>India’s gross domestic product (GDP) growth stood at 6.5 per cent in the first quarter of 2024-25. In January-March 2025 quarter the GDP growth was 7.4 per cent, as per the latest National Statistics Office (NSO) data.</p>.<p>The official data for the April-June quarter is scheduled to be released on August 29.</p>.<p>As per ICRA analysis, services sector growth is likely to accelerate to an eight-quarter high of 8.3 per cent in April-June period. However, both industrial and agriculture sector growth is likely to decelerate.</p>.India's GDP could slow down to 6% in FY26 if US levies 50% tariff: Moody's.<p>Agriculture sector growth is estimated to decline to 4.5 per cent in April-June period from 5.4 per cent expansion recorded in the previous quarter, while industrial sector growth may fall to 4 per cent in Q1 of 2025-26 from 6.5 per cent recorded in Q4 of 2024-25.</p>.<p>ICRA chief economist Aditi Nayar said investment activities in the first quarter of the current fiscal was boosted by the front-loading of government capital expenditure (capex) amid heightened uncertainty owing to geopolitical tensions and tariff-related developments.</p>.<p>“Benefitting from robust Government capital as well as revenue spending, upfronted 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%,” she said.</p>.<p>However, Nayar noted that the growth was likely to decelerate in the remaining three quarters of the current fiscal.</p>.<p>"Amidst continuing tariff-induced uncertainty for exports and private capex, we fear that growth will taper off in the subsequent quarters, which would limit the expansion in India’s GDP to 6.0% in FY2026," she said.</p>.<p>As per Controller General of Accounts (CGA) data, the government of India’s gross capital expenditure spiked by 52% year-on-year to Rs 2.8 lakh crore in the quarter ended June 2025. The aggregate capital outlay and net lending of 24 state governments, for which the CGA data is available, stood at Rs 1.1 lakh crore in April-June quarter, which is 23% higher when compared with the corresponding period of the last year.</p>