India's GDP likely expanded by 7% in the second quarter of the current fiscal year, exceeding the Reserve Bank of India's projections, according to ICRA. The growth eased from 7.8% in the first quarter due to normalization of the base and unpredictable monsoon patterns.
ICRA maintains a FY2024 GDP growth estimate of 6%, citing factors like uneven rainfall, slowing government capex momentum, weak external demand, and the cumulative impact of monetary tightening.
Investment activity remained strong in Q2, with seven out of eleven indicators showing improved YoY growth. Construction activity sustained momentum despite below-average rainfall.