India’ GDP growth likely at 8.5% in first quarter: Icra

India’s economic growth expected to accelerate to 8.5% in Q1 FY24, driven by a recovery in the services sector.

Icra Ratings which released a report and  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. Icra attributed the faster growth to a supportive base and also a recovery in the services sector.

The report suggests that the country’s Gross Domestic Product (GDP) growth is expected to accelerate to 8.5% during the April-June period, a significant increase from the 6.1% growth rate witnessed in the preceding quarter (January-March).

Although ICRA’s growth projection of 8.5% for Q1 FY24 is higher than the Reserve Bank of India’s (RBI) forecast of 8.1%, the report does highlight potential challenges in the second half of the fiscal year.

#currentAffairs 25 August 2023