Mumbai : SBI Research, in its latest 'Ecowrap' report, has projected a healthy growth trajectory for the Indian economy despite prevailing global headwinds. The report estimates the real GDP growth for the fourth quarter of FY26 (Q4FY26) to be approximately 7.2%, while the full-year growth for FY26 is expected to settle at a robust 7.5%.
The report highlights that high-frequency activity data indicates resilient economic performance. A significant driver of this growth is the strengthening of rural consumption, supported by positive signals from both farm and non-farm sectors. Additionally, urban consumption has shown a consistent uptick, further bolstered by fiscal stimulus measures. For the upcoming fiscal year (FY27), SBI Research has nowcasted a real GDP growth rate of 6.6%.
Beyond growth figures, the report emphasizes the urgent need for India to board the Artificial Intelligence (AI) bus. It calls for a comprehensive set of well-crafted policies to leverage AI-led productivity gains, particularly in sectors like Healthcare and Agriculture. The research warns that failing to integrate AI and global value chains could lead to a 'SaaSpocalypse' moment for the software industry, as traditional coding capabilities face challenges from self-training AI models.
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, noted: "While growth remains resilient, it is high time for the country to rededicate towards AI-led competitiveness. Integrating AI into our productivity framework is no longer an option but a necessity to lead from the front in the global economic landscape."