India&rsquo;s economy is expected to have registered a robust growth of 6.8 to 7 percent in the first quarter of FY26, according to the latest assessment. This pace of expansion is stronger than the Reserve Bank of India&rsquo;s earlier estimate of 6.7 percent for the same period.
The key drivers of growth in the April-June quarter were buoyant services, strong manufacturing output, and resilient investment activity. Improved consumer spending, coupled with higher capital expenditure by both central and state governments, further supported momentum.
The report highlighted that while agricultural output faced some pressure due to uneven monsoon distribution, the overall impact on the economy remained limited. Services such as financial, real estate, and professional activities continued to deliver steady gains, while construction and infrastructure activity also showed healthy progress.
On the demand side, private consumption remained steady and showed signs of revival in rural demand. Urban consumption continued to remain strong, aided by higher vehicle sales, increased demand for housing, and strong performance in sectors like hospitality and travel.
The projection suggests that India is well-positioned to maintain its status as the fastest-growing major economy in the world. The report further indicated that consistent policy support, robust foreign exchange reserves, and strong government capital expenditure are likely to sustain momentum in the coming quarters.
If the actual GDP figures align with these estimates, the Indian economy will have surpassed earlier forecasts and demonstrated its resilience amid global headwinds.

SBI report projects 6.8–7% growth in Q1 FY26, beating RBI’s earlier forecast of 6.7%

India’s Q1 GDP May Hit 7%

SBI report projects 6.8–7% growth in Q1 FY26, beating RBI’s earlier forecast of 6.7%

August 22, 2025 | 01:17 IST