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India’s GVA and GDP growth rose to 6.8 per cent and 7.4 per cent, respectively, in Q4 FY25, but both slowed annually to 6.4 per cent and 6.5 per cent, according to the NSO. Industrial activity and public capex drove quarterly gains, while PFCE growth remained strong despite weak urban demand. ICRA projects GDP growth to moderate to 6.2 per cent in FY26 amid global uncertainties.

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SBI believes India is poised to be the fastest-growing major economy in FY26, with a 6.3-6.5-per cent GDP growth due to sound macroeconomic fundamentals, robust financial sector and commitment to sustainable growth, SBI said in its newsletter. With higher anticipated saving, domestic finances will be enough to finance such growth and SBI does not expect demand-induced pressure on prices in FY26.

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