India’ GDP growth likely at 8.5% in first quarter: Icra
Live MintIcra Ratings which released a report on Tuesday said that India's economic growth will accelerate to 8.5% in the April-June period of the current fiscal from the 6.1% growth rate witnessed in the preceding January-March quarter. Nayar said erratic rainfall, narrowing differentials with year-ago commodity prices, and possible slowdown in momentum of government capex "as we approach the Parliamentary elections will limit the growth", and maintained her 6 per cent real GDP growth estimate for FY24 which is lower than RBI's 6.5 per cent. The aggregate capital outlay and net lending of 23 state governments, and the government of India's gross capital expenditure expanded by a sharp 76 per cent to ₹1.2 lakh crore, and 59.1 per cent to ₹2.8 lakh crore, respectively, in Q1 FY24, it added. It estimated that the services' gross value added growth to have risen to 9.7 per cent in Q1 FY24 from 6.9 per cent in Q4 FY23, adding that 11 of the 14 high-frequency indicators pertaining to the services sector recorded a growth during the quarter. Growth in electricity generation dipped to an 11-quarter low of 1.3 per cent in Q1 FY24, owing to an unfavourable base as well as the excess rainfall seen in the first half of the quarter, Icra said.