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Patchy rural recovery and a weak capex weigh on Q1 growth outlook

Urban demand continues to face headwinds and though rural demand is accelerating, it is still patchy, reckoned several economists

Q1FY26 GDP growth, India GDP April June 2025, India economic growth Q1FY26, factory output slowdown India, India private capex trends, farm sector growth India, India services sector growth, Q1FY26 industrial output, rural demand India 2025, urban de
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The Centre for Monitoring Indian Economy (CMIE) data released on Tuesday showed new investment projects from the private sector slipped to Rs. 4.1 trillion in Q1, 81.35 per less than the Rs 21.7 trillion worth of outlays in the previous quarter | Illustration: Binay Sinha

Shiva Rajora New Delhi

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The April to June quarter (Q1FY26) has been an uneven period for economic activity, with factory output, exports and private capex hitting a rough patch, even as the farm sector and services like transport and construction have picked up pace along with government capex.  
 
While the spike in global uncertainties as well as unseasonal rains and an early monsoon have hurt industrial output, urban demand continues to face headwinds and though rural demand is accelerating, it is still patchy, reckoned several economists.  
 
They expect Q1 GDP growth to be in the range of 6-7 per cent, roughly in line with