Industry Odisha Bureau, Jul 23: India’s independent and professional credit rating agency has reportedly gauged that India’s economic activity has sped up June during the current fiscal year 2026-27 (FY2&), while its GDP forecast stands at 6.4-6.6 per cent in the first quarter (Q1) of FY27.
As per media reports, “ICRA has attributed the accelerated economic activity in June to various factors, including the temporary ceasefire between the US and Iran which eased disruptions to economic activity.”
Media reports citing ICRA reportedly stated that, “One of the strongest contributors to June’s performance were automobile-related indicators, as passenger vehicle output expanded 17.6 per cent year-on-year (YoY), two-wheeler production rose 28.1 per cent and vehicle registrations increased 23.2 per cent.”
ICRA also reportedly stated that, “Other indicators that showed stronger growth in June were 16.5 per cent expansion in non-oil merchandise exports, 14.5 expansion in per cent GST e-way bill generation, 7.7 per cent expansion in mining output, 9.4 per cent expansion in port cargo traffic, 7.5 per cent expansion in petrol consumption, 6.2 per cent expansion in diesel consumption, as well as healthy expansion posted by bank deposits and non-food credit.”
Media reports citing ICRA’s findings, have, however, stated that, “The renewed West Asia conflict as well as the uncertainty hovering over a normal monsoon this year has registered a downside risks to ICRA’s GDP growth forecast of 6.7% for FY2027.”
ICRA also reportedly noted that, “Monsoon rainfall during July and August would be crucial for improving the Kharif sowing that could support agricultural yield and contain food inflation, since the agricultural area sown under Kharif crops was 658.19 lakh hectares as of July 17, that is 6.04 per cent lower than the 700.47 lakh hectares recorded a year earlier as per the Agriculture Ministry data released recently.”
