New Delhi, Aug. 17 -- India's gross domestic product (GDP) is likely to ease to a four-quarter low of 7% in the June quarter of the financial year 2026-27 (Q1 FY27) from 7.8% in Q4 FY26, largely due to tensions in West Asia and monsoon-related uncertainty, according to rating agency ICRA.

According to ICRA, the slowdown is expected to be caused by the services sector, which is likely to ease to 7.9% in Q1FY27 from 9.9% in Q4FY26.

However, the industrial, which may grow by 7.7% compared to 7.3% in the last quarter of FY26, and agricultural, which is likely to rise to 4% from 3.6% quarter-on-quarter, is expected to show growth, as per ICRA's estimates.

Meanwhile, the Reserve Bank of India (RBI), after its August 2026 policy meeting, proj...