ICRA Forecasts India’s GDP Growth to 7.2% in Q3 FY26
On February 22, 2026, India’s Credit Rating Agency ICRA Limited, formerly Investment Information and Credit Rating Agency of India Limited, has projected that India’s Gross Domestic Product (GDP) growth to ease to around 7.2% in third quarter (Q3) of Fiscal Year 2025-26 (FY26) (Oct-Dec 2025), down from 8.2% in Q2 FY26.
Key Details of GDP Growth Projection:
Sector Slowdown: The services sector growth is forecast to slow to around 7.8% in Q3 from 9.2% in the second quarter (Q2). Agriculture growth is also expected to decline to about 3% from 3.5% in Q2.
On February 22, 2026, India’s Credit Rating Agency ICRA Limited, formerly Investment Information and Credit Rating Agency of India Limited, has projected that India’s Gross Domestic Product (GDP) growth to ease to around 7.2% in third quarter (Q3) of Fiscal Year 2025-26 (FY26) (Oct-Dec 2025), down from 8.2% in Q2 FY26.
Key Details of GDP Growth Projection:
Sector Slowdown: The services sector growth is forecast to slow to around 7.8% in Q3 from 9.2% in the second quarter (Q2). Agriculture growth is also expected to decline to about 3% from 3.5% in Q2.
- Industrial activity is projected to rise to around 8.3%, highest in 6 quarters.
Gross Value Added (GVA): According to ICRA, the year-on-year (YoY) growth in Services Gross Value Added (GVA) is estimated to moderate to 7.8% in Q3 FY26, compared to 9.2% in Q2 FY26.
Moderation Factors: It includes unfavorable base effects from Financial Year 2024-25 (FY25), contraction in government capital expenditure, subdued state government spending, weak merchandise exports, and a slowdown in services exports to their lowest in several quarters.
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