India's Q2 GDP Growth Set to Dip Amid Economic Challenges

Icra predicts India's real GDP growth for Q2 to decline to 6.5% due to heavy rains and weaker corporate margins. Despite this, FY25's growth is expected to hold at 7%. Factors like government spending and kharif sowing show positive trends, while heavy rain affects industries like mining and electricity.

India's real GDP growth is anticipated to slow to 6.5% in the September quarter, largely due to adverse weather and weaker corporate performance, according to domestic rating agency Icra.

The agency has adjusted its FY25 growth forecast to 7%, looking towards a recovery in the fiscal's second half, even as concerns over urban demand slowdown linger.

Despite the Reserve Bank of India's 7.2% growth estimate, external factors like heavy rains and corporate struggles may see the year's growth falling under 7%, with Q2 official data pending release in late November.

(With inputs from agencies.)