Business EconomyPosted at: Jun 6 2026 3:41PM


India’s GDP growth rises to 7.7 pc in FY26: SBI Research

New Delhi, June 6 (UNI) India's economy delivered a stronger-than-expected performance in the fourth quarter of FY26, helping annual GDP growth accelerate to 7.7 per cent and reinforcing the country's position as the world's fastest-growing major economy, according to a report by SBI Research on Saturday.
The latest Ecowrap report said the economy expanded by 7.8 per cent in the January-March quarter of FY26, up from 7 per cent in the corresponding period of the previous year. The robust fourth-quarter performance lifted full-year GDP growth to 7.7 per cent from 7.1 per cent in FY25.
Gross Value Added (GVA), a key measure of economic activity, grew by 7.9 per cent in both Q4 and the full fiscal year, while core GVA expanded by a strong 9.7 per cent during FY26.
The report highlighted broad-based growth across sectors, led by services and industry. The services sector grew 9.9 per cent in the fourth quarter, supported by a sharp 12.5 per cent rise in trade, hotels, transport, communication and broadcasting-related services. Financial, real estate and professional services also remained resilient, recording growth of 10.4 per cent.
Within industry, construction activity expanded by 8.4 per cent in Q4, while manufacturing registered growth of 7.3 per cent. For the full year, manufacturing emerged as one of the strongest performers with growth of 10.7 per cent. Agriculture, despite some moderation, posted growth of 3.6 per cent in the final quarter.
According to SBI Research, the latest high-frequency indicators for April and May point to above-average acceleration in economic activity, raising the possibility that growth in the first quarter of FY27 could surpass the Reserve Bank of India's estimate of 6.6 per cent.
The report attributed part of the stronger growth performance to improvements in the new GDP series, which better captures the contribution of India's informal economy through datasets such as the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS).
It noted that nearly 7.9 crore enterprises are now registered under ASUSE, contributing around 12 per cent of overall GVA. Increased formalisation, digitisation and improved access to institutional credit have enhanced productivity and strengthened economic activity, it said.
On the investment front, SBI Research pointed to a significant revival in private sector capital expenditure. Private investment announcements surged to Rs 56 lakh crore in FY26 from Rs 37 lakh crore in the previous year, while total investment announcements reached a record Rs 80 lakh crore.
The report said the manufacturing sector accounted for nearly 29 per cent of fresh investment announcements, closely followed by the power sector and building infrastructure projects.
Corporate earnings also reflected the improving economic environment. Around 4,500 listed companies reported revenue growth of 10.3 per cent in the fourth quarter, while profit after tax rose by 26 per cent among non-BFSI companies despite some pressure on operating margins.
SBI Research said India's strong macroeconomic fundamentals, resilient financial sector and sustained policy focus on formalisation, infrastructure creation and productivity enhancement would help the economy weather global uncertainties and maintain its growth trajectory in FY27.
The report also observed that stronger economic activity and a possible rise in the GDP deflator could push nominal GDP growth to 12.5-13 per cent in FY27, significantly higher than the budget estimate of 10 per cent.
UNI SAS AAB
Please log in to get detailed story.
Tags: #India’s GDP growth rises to 7.7 pc in FY26: SBI Research
More News

Industrial and warehousing leasing rises 12pc to 22 million sqft; Delhi NCR, Chennai lead: Report

16 Jul 2026 | 6:33 PM

New Delhi, Jul 16 (UNI) India's industrial and warehousing real estate market maintained strong momentum during the first half of 2026, with Grade A leasing rising 12pc year-on-year (Y-o-Y) to nearly 22 million square feet across the country's top eight cities, despite global geopolitical uncertainties impacting supply chains.

see more..

NSE to launch derivatives on Nifty India FPI 150 Index

16 Jul 2026 | 5:35 PM

Mumbai, Jul 16 (UNI) The National Stock Exchange (NSE) officially announced here on Thursday that it has received approval from the Securities and Exchange Board of India (SEBI) to introduce derivatives on the Nifty India FPI 150 Index, expanding its equity derivatives product suite, which would offer foreign portfolio investors (FPIs) another benchmark-linked hedging instrument.

see more..

Stock markets fail to hold early gains, weigh down by weak global cues

16 Jul 2026 | 5:21 PM

New Delhi, Jul 16 (UNI) The Indian Stock Markets on Thursday failed to hold on to their early gains and ended flat in a volatile session. Indices were weighed down by weak global cues and profit booking.

see more..

Crisil FCI Index improves in June on easing US-Iran tensions, stronger rupee and favourable FPI Inflows

16 Jul 2026 | 4:24 PM

New Delhi, Jul 16 (UNI) Crisil’s Financial Condition Index (FCI) rose to - (negative)0.2 in June from - (negative)1.2 in May after remaining below the comfort band of one standard deviation from the long-period average for three months due to easing geopolitical situation, slight strengthening of the Rupee, and favourable FPIs, said the monthly Macroeconomics First Cut.

see more..

India to see slower growth in 2026 amid global headwinds: Moody's Analytics

16 Jul 2026 | 3:56 PM

New Delhi, Jul 16 (UNI) India's economy is expected to moderate this year as escalating geopolitical tensions, softer global demand and persistent trade uncertainties weigh on economic activity, according to Moody's Analytics.

see more..