SBI Sees Q2 GDP at 7.5% on Investment, Rural Demand and GST Gains
SBI Sees Q2 GDP at 7.5% on Investment, Rural Demand and GST Gains
SBI projects Q2 FY26 GDP growth at 7.5%, driven by rising investment, recovering rural demand, and GST rationalization, signaling broad-based momentum in India's economy.
SBI’s latest forecast suggests India’s economy could clock a robust 7.5% growth in Q2 FY26, aided by a pickup in investment and a rebound in rural demand. The projection points to a broad-based momentum across key sectors, with services and manufacturing continuing to pull the economy higher.
A major driver cited is the surge in investment, supported by improving business sentiment and ongoing capital expenditure across industries. This investment wave is complemented by a rebound in rural demand, as agricultural income stabilizes and rural consumption indicators begin to trend higher.
GST rationalization is noted as a contributing tailwind, helping to streamline compliance and stimulate consumption, while manufacturers and service providers report steadier activity. Consumption indicators have also shown strength, underscoring the resilience of domestic demand in the face of global headwinds.
While the outlook remains positive, observers caution that external factors such as global growth slowdowns and inflation dynamics could influence the trajectory. Still, the SBI forecast underscores a constructive momentum for India’s economy as it edges toward the second half of FY26.
Cover image source: GDP growth for second quarter at 7.5% and more due to GST cut led festive sales, says SBI report 🔗
