India's Q2 GDP growth seen at 6.7% on strong services play
Indian economy likely expected 6.7% in the July-September quarter, according to a median forecast of 10 economists polled by ET, boosted by a strong performance by the services sector.
The Reserve Bank of India (RBI) has forecast 6.5% growth in the quarter.
Robust manufacturing and construction activity also likely contributed to growth in the second quarter, economists said. Forecasts ranged from 6.2% to 7%.
The economy grew 7.8% in the April-June quarter and 6.2% in the July-September quarter last fiscal.
«We expect GDP growth to moderate sequentially to 7% in the second quarter of FY24, partly on a less supportive base, while exceeding the MPC's last estimate of 6.5%,» said ICRA chief economist Aditi Nayar, giving the highest estimate in the survey.
The official national accounts data for the second quarter of the current fiscal will be released at the end of November.
«The services sector is expected to power growth in Q2 as reflected in strong services PMI and passenger traffic numbers while construction and manufacturing are also expected to put up a good show,» said Rajani Sinha, chief economist, CareEdge, penciling in 6.5% growth in Q2 of FY24.
S&P Global's Services PMI averaged 61.1 in the July-September quarter, accelerating from 60.6 in the preceding three months, data released last month showed, indicating services activity strengthened in the quarter.
