India Q1 GDP growth seen at 7.3% as consumption, capex cushion Iran war shock: ET poll
India's economy likely grew over seven percent in the first quarter of fiscal year twenty twenty seven. Resilient consumption and exports supported this robust economic expansion during the period. Government capital expenditure also played a significant role in driving overall economic activity. High frequency indicators suggest healthy domestic volume growth across sectors. Economists…
India's economic growth is projected to stay above 7% in the first quarter of FY27, according to an ET poll of 10 economists. The growth is largely driven by resilient consumption, robust export, and government capital expenditure, despite disruptions caused by the Iran war and increased commodity prices. The median growth estimate stands at 7.3%, with ranges from 6.7% to 8%.
The Reserve Bank of India (RBI) estimates the GDP growth for the June quarter at 7%. The economy expanded by 7.8% in the March quarter and 6.8% in Q1FY26. The National Statistical Office (NSO) is scheduled to release the official GDP data for Q1 on August 31. High-frequency indicators across industrial and services sectors indicate a healthy volume growth in Q1FY27, indicating the concerns of a fallout of the West Asia conflict are unfounded.
Industrial production grew by 5.7%, services activity remained robust, and services exports accelerated. However, some sectors might face a drag due to elevated energy prices and reduced travel activity amid geopolitical tensions. Economists anticipate a moderation in growth in the subsequent quarters of FY27, due to the economic fallout of the Iran war and high raw material and energy prices.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
