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Domestic rating agency Icra estimated India's growth rate maybe 6.5% in the September quarter
GDP, Icra on Indian Economy: Domestic rating agency Icra has lowered the country's growth forecast for the financial year 2024-25 to 6.5%. However, the growth rate forecast of 7% for the current financial year has been retained. Let us know what else the rating agency has said about the country's economy in the report.
Domestic rating agency Icra estimated that India's real GDP growth rate may decline to 6.5 percent in September on Wednesday. The reason behind this is because of heavy rains and weak performance of companies in quarterly results. However, the agency has retained the growth forecast for FY 2025 at 7 percent due to the expectation of a pick-up in economic activity in the second half of the financial year. Icra's comment comes at a time when concerns are being expressed about a slowdown in growth due to many factors such as a decrease in urban demand.
RBI has maintained its forecast of 7.2 percent growth for the current financial year. A majority of the analysts said the growth rate will be below 7 percent. For the last couple of weeks, several analysts have been talking about cutting the forecast over the growth rate. The official data on economic activity for the second quarter is scheduled to be published on November 30. In the first quarter, the GDP growth rate was 6.7 percent.
ICRA said that the decline in the growth rate in the second quarter will be due to factors such as heavy rains and weak corporate margins. The report said, "There has been a positive trend in government spending and kharif sowing, but the industrial sector, especially the mining and power sector, is expected to slow down."
