Amidst global uncertainties and ongoing economic turmoil, some relief news has emerged for the Indian economy. According to a research report by State Bank of India (SBI), India’s economic growth rate could reach about 7.5 percent in the second quarter of FY 2026 due to GST reforms, rising demand in rural areas and strong investment activities. According to news agency ANI, strong performance and reforms in the services and manufacturing sectors have led to strong demand growth, which may sustain this momentum going forward. The report also said that there has been a significant increase in shopping during the festive season due to the cut in GST rates.
Rapid growth in three areas
The SBI report said that all three sectors: agriculture, industry and services sector have seen significant growth. Due to the pickup in economic activity, consumption and demand, which was 70 percent in the first quarter, increased to about 83 percent in the second quarter. Additionally, GST collections in November 2025 are estimated to be around ₹1.49 lakh crore, an increase of around 6.8 per cent over the previous year. If IGST and import cess of ₹51,000 crore are included, the total GST collection could exceed ₹2 lakh crore.
Clear signs of economic growth
The primary indicator of economic growth is growth in consumer spending. Credit and debit card transactions, especially in the auto, grocery and electronics categories, have seen rapid growth, especially in the e-commerce sector. According to city-wise data, positive e-commerce trends are most visible in mid-tier cities, indicating changing consumer trends.