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India’s Q2 Growth Seen Near 7%–7.3% as Industry Outpaces Services, Private Forecasts Indicate

Official figures arrive November 28 following a manufacturing rebound linked to GST rationalisation and pre‑festive stocking.

Overview

  • An Economic Times poll of 12 economists pegs July–September GDP growth at a median 7.3% year on year, with estimates ranging from 6.9% to 7.7%.
  • ICRA projects Q2 GDP at 7.0% and GVA at 7.1%, with industry set to lead on the quarter’s strongest showing in five quarters.
  • Manufacturing and exports strengthened on GST-led demand and front‑loaded shipments to the US, with IIP averaging 4.1% and manufacturing output up 4.9%.
  • Government capital spending stayed supportive as Centre capex rose about 30.7% year on year in Q2, while states’ capex contracted 4.6% and central non‑interest spending fell 11.2%.
  • ICRA expects services GVA to slow to about 7.4% and agriculture to around 3.5% due to weaker services exports and erratic rains, and it warns growth could slip below 7% in H2 without stronger capex and clearer tariff settings.