India to Remain Among Fastest-Growing Economies, SBI Research Says
SBI Research says India will stay among the fastest-growing economies, citing strong credit, deposits, and corporate performance.
India has weathered successive global and domestic shocks and will continue to be one of the world's fastest-growing economies, according to a special report by SBI Research released on the country's 80th Independence Day.
The report, titled 'India was, is and will be one of fastest-growing economies', points to robust GDP growth, rising credit and deposits, strong corporate performance, and an improving monsoon outlook as key drivers of resilience.
SBI has projected real GDP growth of 8 per cent for the first quarter of FY27. Credit growth stood at 19.3 per cent for the fortnight ended July 31, while bank deposit growth rose to 15.4 per cent.
The report also highlights the impact of foreign currency inflows under the special FCNR(B) deposit mobilisation scheme. As of August 13, FCNR(B) deposits stood at USD 52.3 billion, with total mobilisation including overseas foreign currency bonds and external commercial borrowings reaching USD 56.8 billion. SBI Research expects FCNR(B) mobilisation to reach USD 65-70 billion by the scheme's end, with total inflows potentially hitting USD 80-85 billion. The RBI has recouped around USD 31 billion in foreign currency assets as of August 7.
The stronger deposit and foreign-currency funding position is expected to support the government securities market, particularly the 3-7 year segment, followed by the 7-10 year segment.
Foreign portfolio investor flows have reversed following recent RBI and government measures. Among 2,257 listed non-BFSI companies, net sales, EBITDA, and profit after tax grew 24 per cent, 9 per cent, and 4 per cent respectively in Q1 FY27.
The rural outlook has also improved. The nationwide monsoon deficit narrowed to around 13 per cent after a sharp June deficit was offset by surplus July rains and normal August rainfall. Kharif sowing is only 2 per cent below last year's level, indicating better irrigation coverage.
The report also notes a rise in high-income taxpayers: those earning Rs 100 crore and above increased 39 per cent to 576 in assessment year 2026, while those earning Rs 1 crore and above rose 14 per cent to 5.36 lakh.
While celebrating the economy's resilience, the report stresses the need for credible and sustainable macroeconomic mechanisms in the current environment.