India's GDP growth likely to cross 7.5 pc in Q2: SBI report

In a good news for investors, a research report by the SBI has predicted that India's GDP growth is expected to reach 7.5 per cent or more in the second quarter of the current fiscal, mainly driven by robust festive sales triggered by the GST rate cut in late September.

- PRESS TRUST OF INDIA

Growth is being supported by a pick up in investment activities, recovery in rural consumption, and buoyancy in services and manufacturing, underpinned by structural reforms like GST rationalisation, which also helped unleash a festive spirit that decisively showcased the triumph of hope over hype, the report said.

“In the continuum of the good numbers from festive-led sales, the percentage of leading indicators in consumption and demand across agriculture, industry, and services showing acceleration has increased to 83 per cent in Q2 from 70 per cent in Q1. Based on the estimated model, we obtain a nowcast of real GDP growth of about 7.5 per cent in Q2FY26 with the possibility of an upside surprise," said the report by SBI’s economic research department.