Daijiworld Media Network - New Delhi
New Delhi, Jun 6: India’s economic growth could surpass the Reserve Bank of India’s projected 6.6 per cent expansion for FY27 if the momentum witnessed in April and May continues through June, according to a report released by SBI Research on Saturday.
The report noted that several high-frequency economic indicators recorded stronger-than-expected growth during the first two months of the financial year, signalling sustained economic resilience despite global uncertainties.
According to SBI Research, India remains well-positioned to retain its status as the world’s fastest-growing major economy in FY27, supported by strong macroeconomic fundamentals, a stable financial system and ongoing structural reforms.
The report also revised its outlook for the GDP deflator, estimating it could rise to 6.5–7 per cent from the earlier projection of 4.5–5 per cent. As a result, nominal GDP growth could reach 12.5–13 per cent, significantly higher than the 10 per cent growth assumed in the Union Budget.
SBI Research identified formalisation of the economy and rapid digitisation as key drivers of productivity gains and improved access to institutional credit. It also pointed to findings from the Periodic Labour Force Survey (PLFS), which suggest that skill training contributes to reducing informal employment.
The report said government initiatives aimed at expanding digital adoption and enhancing workforce skills are expected to further strengthen the growth trajectory in the coming years.
India’s economy recorded a robust 7.8 per cent growth rate in the fourth quarter of FY26, compared to 7 per cent in the corresponding period of the previous fiscal year. Supported by the strong quarterly performance, overall GDP growth for FY26 is estimated at 7.7 per cent, up from 7.1 per cent in FY25.
At the global level, the report observed that recent volatility in US technology stocks was largely driven by market disappointment over the Federal Reserve's policy stance. Stronger-than-expected job creation in the United States reduced expectations of an early interest rate cut, weighing on technology shares that are particularly sensitive to borrowing costs.
However, the report also cautioned that external risks remain. It cited factors such as a potential spike in crude oil prices, below-normal monsoon conditions and rising inflationary pressures as challenges that could affect consumption and economic growth going forward.
Despite these concerns, SBI Research maintained an optimistic outlook, highlighting India's strong domestic demand, ongoing reforms and improving productivity as key pillars supporting future growth.