Q2 GDP growth forecast at 7%: Icra

New Delhi: India’s GDP expansion is expected to reach a robust seven per cent in the second quarter of the current financial year (Q2 FY26) from 7.8 per cent in the April-June period (Q1 FY26), a report said on Monday. Further, the growth in the gross value added (GVA) is expected to record a narrower dip to 7.1 per cent from 7.6 per cent, respectively.

“Lower expansion in the services sector, 7.4 per cent in Q2 FY26 from 9.3 per cent in the first quarter this fiscal, and agriculture- 3.5 per cent from 3.7 per cent, is likely to outweigh a pick-up in the performance of the industrial sector to a five-quarter high 7.8 per cent from 6.3 per cent,” ICRA said in its report.

The report estimated net indirect taxes (in nominal terms) to contract on a year-on-year (YoY) basis in the quarter under review, after having risen by 9.5 per cent in Q1 FY26, aided by the decline in indirect taxes to -5.2 per cent from 11.3 per cent in Q1 FY2026, amid the shallower contraction in its subsidies to -4.6 per cent from -7.3 per cent.