Summary:

An SBI Research research published in May 2026 projects that India's economy would expand by 6.6% in FY27. According to the research, India has demonstrated resilience in the face of geopolitical tensions and worldwide uncertainties. While Q4 FY26 growth is anticipated to be close to 7.2%, GDP growth for 2025–2026 is projected to be 7.5%. Economic momentum is anticipated to be supported by robust domestic consumption, growing rural demand, and consistent credit expansion. Despite a minor slowdown in the fourth quarter, high-frequency indicators point to strong activity. In FY26, bank credit growth increased from 11% to 16.1%, with incremental credit totaling Rs. 29.5 lakh crore. Demand in both rural and urban areas remained robust, despite ongoing threats of inflation due to oil prices and El Niño circumstances.

Source: IBEF

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