Economic activity was robust in September 2026; GDP growth expected to moderate slightly in Q2 FY2027, while remaining healthy
Monthly Update
23 Oct 2026
The year-on-year (YoY) expansion in economic activity, as measured by the ICRA Business Activity Monitor - an Index of high frequency indicators, rose to a 3-month high of 12.1% in September 2026 from 10.8% in August 2026, while printing in double digits for the fourth consecutive month. The acceleration was led by an improvement in the YoY performance of eight of the 16 constituent indicators between these months.
Moreover, the YoY growth in the output of the core sector surged to a series-high of 7.9% in September 2026, led by a stronger YoY performance across seven of the nine sub-sectors, barring electricity and cement.
