SBI Research Projects India’s Q4FY26 Growth at 7.2%

Current Context: The SBI Research report “Q4 FY26 GDP could be healthy ~7.2% & ~6.6% in FY27” (Issue #05, FY27) was released on May 11, 2026 in India by the Economic Research Department of State Bank of India (SBI Research).

• It projects Q4 FY26 GDP growth at ~7.2%, slightly below NSO’s advance estimate of 7.3%.
• For the full year FY26, growth is expected at 7.5%, while the FY27 outlook moderates to 6.6% (Q1 ~6.8%, tapering to ~6.5%).
• The report highlights resilient domestic demand, with strong rural (farm + non‑farm) consumption and recovering urban demand aided by fiscal measures.
• It notes that 85% of nearly 50 high‑frequency indicators accelerated in Q4, and credit growth surged to 16.1% in FY26 with ₹29.5 lakh crore incremental lending, mostly in H2.
• Risks include oil price shocks, rupee depreciation, and Balance of Payments pressures amid global tensions.

Question:

Q.1 According to the State Bank of India (SBI) Research report, India’s Quarter 4 Financial Year 2025–26 Gross Domestic Product (GDP) growth is projected at approximately:
a) 6.2%
b) 6.6%
c) 7.2%
d) 7.8%

Answer: c) The report projected Quarter 4 Financial Year 2025–26 Gross Domestic Product (GDP) growth at around 7.2%, slightly below the National Statistical Office (NSO) estimate.