Current Affairs - Economy - Discussion

7.2% is the GDP growth rate projected by ICRA for India in the third quarter of FY26. This estimate reflects a moderation compared to the 8.2% growth recorded in the second quarter. The slowdown has been attributed to weaker performance in services and agriculture, even though the industrial sector showed improvement. Key contributing factors include a high base effect, a significant decline in central government capital expenditure, nearly flat state spending, subdued exports, and reduced services export growth. However, festive demand supported economic activity, helping maintain overall growth above the 7% mark during the quarter.