New Delhi, May 31 (IANS). According to a latest report by State Bank of India (SBI), India will remain the fastest growing economy in FY 2026 with its strong major economic foundation, financial sector and commitment to sustainable development.
Based on the latest annual report of RBI, Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor of SBI said, “Domestic finance with high anticipated savings will be enough for funding of anticipated development. Along with this, the demand related to demand on prices is negligible.”
Ghosh said that external and geopolitical factors for development could be obstructed.
In the fourth quarter, 7.4 percent GDP growth was supported by a strong bounce in capital formation. Capital building recorded an annual growth of 9.4 percent.
The improvement in capital formation occurred due to revival in the main area in the fourth quarter, as is clear from the high-frequency indicators.
The total increase in capital construction for FY 2025 is now 7.1 percent.
India’s economy increased by 7.4 percent in the fourth quarter of FY 2025, compared to 8.4 percent in the same quarter of the previous financial year.
The annual growth of FY 2025 is estimated to be 6.5 percent based on the fourth quarter data.
In the fourth quarter of FY 2025, almost all areas registered a better growth.
While the industry increased by 6.5 percent, the service sector increased by 7.3 percent in the fourth quarter.
During the fourth quarter, the construction sector under the industry increased by 10.8 percent and the manufacturing sector 4.8 percent. Personal consumption maintained its good position in the fourth quarter, although there was a gradual slow rate of increase in the fourth quarter.
Overall, the private final consumption expenditure for FY 2025 recorded an increase of 7.2 percent.
Export demand was good during the whole year, with an increase of 6.3 percent, while imports decreased by 3.7 percent during the whole year.
According to SBI report, this increase was recorded due to promoting exports amidst American tariff uncertainty.
-IANS
SKT/ABM
