Trump's tariffs are ineffective, the economy will take a leap on Made in India, SBI releases new GDP estimates
India's economy is booming. US tariffs have slightly dampened export figures, but the power of Made in India has revitalized the economy.
India GDP Growth: India's economy is growing at a rapid pace. US tariffs slightly dampened export figures, but the strength of Made in India has revitalized the economy.
The festive season reflected the second quarter figures. The country's largest bank, the State Bank of India, has projected GDP growth. According to SBI's estimate, India's growth rate could be 7.5 percent.
India's economic growth
is expected to remain close to 7.5 percent in the second quarter of FY26 due to the festive season, according to a report released on Tuesday.
Data compiled by SBI Research showed that the Indian economy is being strengthened by increased investment activity, rising rural consumption, and robust growth in the services and manufacturing sectors.
This trend is being supported by structural reforms such as GST 2.0, which have played a key role in boosting festive demand. SBI Research reported that most economic indicators are now showing an uptick.
Of the 50 key indicators covering agriculture, industry, services, and consumption, 83 percent showed improvement in the second quarter, compared to 70 percent in the first quarter.
The report stated that the country's GDP growth rate in the second quarter of FY26 is expected to be between 7.5-8 percent, and GVA growth is estimated to be around 8 percent.
The report estimated that growth is expected to remain strong across the board in the coming quarter. The festive season from September to October played a significant role in boosting demand.
Meanwhile, GST rate cuts and strong e-commerce activity have helped boost consumer spending. Credit and debit card transaction data showed strong growth in categories such as auto, grocery, electronics, household goods, and travel.
Mid-tier cities saw the highest growth in spending, while metros saw a rise in debit card usage on e-commerce platforms. Grocery and supermarket items accounted for the majority of debit card purchases, according to the report.
The report found that GST rationalization has made most major consumption categories highly resilient, meaning consumers responded strongly to lower tax rates. Only the apparel sector showed less resilience.
SBI Research estimates that a typical Indian consumer can now save about 7 percent per month on their consumption expenditure, and this benefit could increase further as more data becomes available.