New Delhi, Nov. 18 -- India's growth drivers are set to shift in second quarter (Q2) of FY2026, with industry expected to outpace services for the first time in four quarters, even as overall GDP expansion moderates, according to credit rating agency ICRA.

The rating agency expects GDP growth to ease to 7.0 per cent year-on-year from 7.8 per cent in Q1 FY2026, with Gross Value Added (GVA) growth likely to dip slightly to 7.1 per cent from 7.6 per cent.

ICRA stated that while the services and agriculture sectors are expected to lose some momentum, a strengthening industrial performance, driven by manufacturing, construction, and favourable base effects, is anticipated to underpin the quarter's economic activity.

ICRA expects net indirec...