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Business
India’s Q1 FY27 GDP Forecasted at 6.4‑6.6% Despite Margin Pressures, Icra Says
✍️ BW Businessworld
🗓 26 Jul 2026, 09:03 AM
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Icra’s latest estimate projects India’s first quarter of FY27 GDP to grow between 6.4% and 6.6%, signalling resilience amid tightening profit margins across sectors.
India Chamber of Commerce and Industry (Icra) has released a new estimate for the country’s gross domestic product in the first quarter of fiscal year 2027. The organisation projects growth of 6.4% to 6.6%, a figure that reflects continued momentum in the economy.
The forecast comes amid concerns that rising input costs are squeezing profit margins for firms across the manufacturing and services sectors. Despite these headwinds, Icra notes that consumption spending and investment have remained robust, supporting the growth outlook.
Icra’s analysis highlights that the services sector, particularly information technology and financial services, is expected to drive a significant portion of the expansion. Manufacturing output is also projected to rise, buoyed by domestic demand and export activity.
Economists view the estimate as a positive sign for India’s economic trajectory, suggesting that the country may maintain a growth pace that keeps it among the fastest‑growing major economies in the world.
The forecast comes amid concerns that rising input costs are squeezing profit margins for firms across the manufacturing and services sectors. Despite these headwinds, Icra notes that consumption spending and investment have remained robust, supporting the growth outlook.
Icra’s analysis highlights that the services sector, particularly information technology and financial services, is expected to drive a significant portion of the expansion. Manufacturing output is also projected to rise, buoyed by domestic demand and export activity.
Economists view the estimate as a positive sign for India’s economic trajectory, suggesting that the country may maintain a growth pace that keeps it among the fastest‑growing major economies in the world.