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| India’s economy is likely to grow around 7% in Q1 FY27: SBI Research report |
India’s economy is likely to grow around 7 per cent in the first quarter of current fiscal, higher than earlier expectations, supported by stronger economic indicators, improved industrial activity and a recovery in exports.
According to an SBI Research Pre-Monetary Policy Committee (MPC) report released yesterday, the growth estimate marks an improvement from the Reserve Bank of India’s earlier projections, which were lowered because of geopolitical uncertainties.
The report attributed the improved outlook to a broad-based pickup in high-frequency indicators during the April-June quarter. It said, domestic passenger vehicle sales grew 24.1 per cent year-on-year in June, electricity demand increased 11.5 per cent, exports rose 15.5 per cent, industrial credit expanded 19.2 per cent and the Index of Industrial Production (IIP) grew 7.3 per cent, indicating stronger economic momentum during the quarter.
SBI Research also noted that the global environment remains uncertain amid the West Asia crisis, but India’s domestic economy has shown resilience.
The report said the recovery in monsoon conditions could further support economic activity in the coming months. It noted that July’s surplus rainfall reduced the nationwide rainfall deficit to about 13 per cent, while reservoir levels have returned to normal and kharif sowing is only 4.7 per cent lower than last year’s level, pointing to the prospects of a better harvest.
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