New Delhi, Aug. 18 -- India's manufacturing growth is expected to slow to a nearly two-year low of around 6 per cent in the first quarter of FY27, from 7.3 per cent in the previous quarter, as higher raw material costs amid West Asia tensions weighed on company profits, according to ICRA.

The rating agency estimates manufacturing gross value added (GVA) growth to moderate to around 6 per cent in Q1 FY27, the lowest since Q2 FY25.

"ICRA estimates the manufacturing GVA growth to moderate to ~6.0% in Q1 2026-27 from 7.3% in Q4 2025-26, the lowest growth print since Q2 2024-25," ICRA said in its press release.

The slowdown in manufacturing GVA comes despite an improvement in production volumes during the quarter. Manufacturing volume growt...