The ICRA business activity monitor for India, an index of high frequency indicators, indicated that the year-on-year (YoY) expansion in economic activity jumped to a 32-month high of 12 per cent in June this year from 9.4 per cent in May.
ICRA has projected India’s GDP to have grown by a healthy 6.4-6.6 per cent in Q1 FY27.
However, this is weaker than 7.7 per cent in Q4 FY26 and reflects the impact of high energy and commodity prices and limited availability of inputs on the margins of some sectors.
The ICRA business activity monitor showed the YoY expansion in economic activity jumped to 12 per cent in June from 9.4 per cent in May.
The uptick was broad based, with as many as 13 of the 16 constituent indicators seeing an acceleration in their YoY growth rates between these months.
This likely reflects some favourable impact of the temporary ceasefire between the United States and Iran on domestic activity, the large rainfall deficit of 40 per cent in June 2026 (steepest in 12 years) that offered extended period for construction and mining activities, and a low base across some indicators, an ICRA release said.
ICRA expects the growth in the index of industrial production (IIP) to have hit 5-6 per cent in June 2026; it was 5.1 per cent in May.
Fibre2Fashion News Desk (DS)
