India's economic growth is expected to accelerate to 8.5% in the April-June period, according to Icra Ratings. This is higher than the RBI's forecast of 8.1% and is attributed to a supportive base and a recovery in the services sector. However, Icra's chief economist warned that the second half of the fiscal year could see headwinds due to factors such as erratic rainfall and a slowdown in government capex. Despite the strong growth in the June quarter, electricity generation dipped to an 11-quarter low of 1.3%.
