GDP
SBI predicts 7.5% growth for India in Q2 FY26 — here are the forces powering the boom!
Mumbai/IBNS: The State Bank of India (SBI) on Tuesday predicted the Indian economy will grow at 7.5% in the second quarter of the ongoing fiscal year, media reports said.
A research report by SBI said the growth will be steered by stronger investment activity, improvement in rural demand and effects of GST radicalisation.
It reports that 83 percent of the 50 leading indicators across agriculture, industry, services and consumption showed acceleration in Q2, up from 70 percent in Q1.
Based on the estimated model, we obtain a nowcast of real GDP growth of 7.5% in Q2FY26 with possibility of an upside surprise.
Key drivers cited:
- A revival in investment activity
- Improvement in rural consumption
- Strong festive-season demand, aided by recent GST rationalisation & lower tax rates
- It flags risks such as global commodity volatility and trade/spillover effects.
It also notes that gross domestic GST collections for November 2025 could exceed Rs. 2 lakh crore (including IGST & import-cess) as a marker of stronger demand.
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