GDP to grow at 6.5%, says Icra

MUMBAI: Rating agency Icra has reversed its earlier GDP growth downgrade, citing the consumption lift from GST rate cuts. The agency said the move, along with income-tax relief, has put Rs 3 lakh crore in the hands of households this year.

"The GST rate cuts were unexpected and implemented very quickly," said Aditi Nayar, chief economist, Icra. "We had cut our FY25 growth forecast from 6.5% to 6.2% and then to 6% because of tariff hikes and weaker exports. With this consumption stimulus, we are back at 6.5%."