Last Updated on May 11, 2026 11:54 pm by BIZNAMA NEWS
An SBI Research Report for May 2026 has said that India’s economy is projected to grow at 6.6% in the Financial Year 2026-27, as against the GDP growth for the Financial Year 2025-26, which is likely to be at 7.5%. Stating that India continues to demonstrate resilience despite global uncertainties and regional conflicts, the report says that credit growth is likely to remain robust for the first half of 2026-27. It added that domestic consumption is also expected to hold GDP growth upwards.
While stating that the near-term food supply prospects have been boosted by robust rabi crops, the report warns that volatility in crude oil and other commodity prices, along with possible El Niño conditions, may impart considerable volatility to inflation.
The report has, however, expressed the need to put in place a comprehensive package to address the Balance of Payments amid rupee depreciation and rising crude prices. It has also called for suitable calibration of the resurgent Indian Diaspora Bond across corpus, yield, tenor and tax-friendly treatment for investors.
Emphasizing that Artificial Intelligence – AI – added roughly 0.1 to 0.5% to GDP levels annually in Advanced Economies during 2024-25, the report states that it is high time for India to rededicate itself towards AI-led productivity gains, competitiveness and global value chain integration through carefully crafted policies.