India's Economic Surge: A Steady Climb or Temporary Spike?
The Indian economy is projected to grow 6.7% in Q1 FY2026, spurred by higher government capex and exports according to Icra. This figure surpasses RBI's estimate for the same period. However, concerns over export uncertainties and private capex suggest a potential GDP growth slowdown in later quarters.
- Country:
- India
The Indian economy is poised for a promising start this fiscal year, with a projected growth rate of 6.7% in the April-June quarter, according to rating agency Icra. This increase is largely attributed to amplified government capital expenditure and heightened export activities.
Interestingly, this predicted growth overshadows the Reserve Bank of India's Monetary Policy Committee's (MPC) expectations of a 6.5% rise. In the previous fiscal period ending March FY25, the economy recorded an even higher expansion of 7.4%.
However, Aditi Nayar, Icra's Chief Economist, warns of potential growth restraints in following quarters, citing ongoing trade uncertainties and restricted private capital expenditure as key challenges possibly capping the fiscal year GDP growth at 6%.
(With inputs from agencies.)
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