New Delhi: India’s Gross Domestic Product (GDP) for the first half of the current financial year, FY 26, is likely to be around 7.6 percent. It would be higher than the same period last year, which was 6.1 percent.

Economic activities remained strong in the first two quarters

According to the ICICI report, economic activities were strong in the first two quarters of the year. Several factors, including services, continued government spending, and robust manufacturing, contributed to economic activity. "India's GDP growth in H1FY26 is now estimated at 7.6 per cent YoY compared with 6.1 per cent YoY in H1FY25", the report said.

It further said that even as the speed of growth in the second half of FY26 may be at 6.4 percent year-on-year basis because of reduced exports and a dip in government capital expenditure pace, consumption as a whole may remain resilient.

The ICICI report further noted that the fiscal room may maintain spending if the Centre can raise additional resources. The ICICI expects the growth of GDP to be at 7.0 percent in FY26 and 6.5 percent in FY27.

GDP for the July-September quarter may reach 7.5 percent

India’s real GDP for the July-September quarter may reach 7.5 per cent year-on-year, even as Gross Value Added (GVA) growth may remain at 7.3 per cent. The surge is expected to be encouraged by the manufacturing and services sectors.

The report further noted that after a strong GDP performance in Q1 in the current financial year, the economy may maintain its momentum in Q2. The same can seen in seasonally adjusted indicators across services, industry, and consumption. The industry and services continue to show positive momentum on a year-on-year basis.