New Delhi, Aug. 18 -- India's real GDP growth is likely to moderate to 7 percent in the June quarter of FY27 from 7.8 percent in Q4 FY26, marking a four-quarter low, amid headwinds from the West Asia conflict and monsoon-related uncertainty, according to ICRA.

Services Sector Likely to Drive Slowdown

ICRA expects services to drive the slowdown, with GVA growth projected to fall to 7.9 percent in Q1 FY27 from 9.9 percent in Q4 FY26. Industrial GVA growth is estimated to rise to 7.7 percent from 7.3 percent, while agriculture, forestry and fishing growth is projected to increase to 4 percent from 3.6 percent.

Overall GVA growth is expected at 7.2 percent, down from 7.9 percent. ICRA said domestic activity remained healthy, but West Asia-...