The figures for the first quarter of the current financial year 2025-26 are beginning to appear. The rating agency ICRA has released the latest report, which states that India’s GDP i.e. GDP is expected to be 6.7 percent in this quarter. This is slightly higher than the RBI’s 6.5 percent estimate. However, this is less than 7.4 percent found in the last quarter of last year.
Service sector performs tremendous
Talking about different sectors of the country, there is a slow growth in agriculture and industrial sector. The development of farming will now be around 4.5% as compared to the previous 5.4%. At the same time, the industry can also fall from 6.5% to 4% increase in the last quarter. But the good news is that the service sector has performed tremendously. The increase here is likely to be 8.3%, which is better than 7.3% of the same quarter of last year. Meaning the service sector has brightened the economic picture of the entire country.
Increase in government’s income
The government’s income is increasing. Indirect tax has increased by 11.3% in the current quarter, which is a big jump after the fall in the last quarter. With this, subsidy expenditure has decreased, which has strengthened the physical situation of the government. Government spending is also helping in development. The central government has increased capital expenditure by 52%, which has reached close to 2.8 trillion rupees. State governments have also registered a growth of 23% to increase capital expenditure.
Tremendous boom in new projects
The condition of new projects is also good. The total value of new projects in this quarter has almost doubled to 5.8 trillion rupees. It was just 3 trillion rupees in the same quarter of last year. This makes it clear that the investment environment is getting better and economic activities in the country are getting fast.
What does this report say?
Overall, the first quarter figures are better than expected. There is a slight recession in farming and industry, but the service sector and government expenditure have handled the situation. Economic growth is also helping with the increase of investment. In the coming months ahead, it will have to be seen whether this growth continues or not, especially among global challenges. At present, signs of India’s economy being strong are clearly visible.