ICRA — India's GDP Growth Projection

Q1 FY27 Projection

6.4–6.6%

Previous Quarter

Q4 FY26 real GDP growth:

7.8%

Business Activity Monitor

June 2026:
12% YoY growth

May 2026:
9.4%

Industrial Outlook

ICRA projected June 2026 IIP growth:

5–6%

Factors Supporting Growth

• Broad-based economic activity
• Construction and mining activity
• Base effect
• Improved high-frequency indicators

Challenges

• Elevated energy prices
• Limited input availability
• Manufacturing margin pressures
• Supply-side constraints

UPSC

GS-III: Economic growth + inflation + industrial production + external shocks.