New Delhi, May 11 (IANS). India’s economy is expected to grow at 6.6 percent in FY 2026-27 and 7.2 percent in Q4FY26. This information was given in the report of SBI Research on Monday.
The report said that India’s growth rate is expected to be 7.5 percent in FY 26. This shows that the Indian economy remains strong even amid global shocks.
Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India (SBI), said, “Rural consumption remains strong due to positive signals from agriculture and non-agriculture activities. Supported by fiscal stimulus, urban consumption has seen a sustained increase since the last festive season.”
Bank credit of scheduled commercial banks (SCBs) recorded a growth of 16.1 per cent in FY2026 from 11.0 per cent in FY2025. Total credit growth stood at Rs 29.5 lakh crore, compared to only Rs 5 lakh crore in the first half and Rs 24.5 lakh crore in the second half.
Credit continued to rise in H2FY26 as the government boosted consumption through GST. The report states that this trend is still continuing and the loan is expected to increase by 16 percent by April 30, 2026.
“However, we expect credit growth to remain strong in H1FY27 and decelerate in H2 due to high base effect. Credit growth for the full year is estimated at 13-14 per cent,” the report further said.
Despite external crises, especially the West Asian crisis, domestic consumption is expected to contribute positively to GDP growth.
Moreover, according to the SBI report, a $10 per barrel increase in crude oil prices could lead to an increase in the current account rate by 0.35 per cent, inflation by 0.35 to 0.40 per cent and GDP by 0.20-0.25 per cent.
–IANS
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