New Delhi, February 24, 2026: India’s economy is projected to continue its strong growth trajectory, with GDP growth likely to reach around 8 percent in the third quarter (October-December) of the 2025-26 fiscal year, according to a report by State Bank of India (SBI) Research.
The assessment comes amid signs of robust domestic demand, with both rural and urban consumption showing resilience and supporting overall economic activity. Despite global uncertainties and external headwinds, the SBI Research report suggests that sustained momentum is keeping India’s economy on a steady growth path.
SBI Research Highlights Robust Activity
According to the report, a range of high-frequency indicators — encompassing consumer demand, manufacturing activity, and services sector performance — show that the domestic economy maintained strength throughout Q3 FY26. Experts say this broad-based activity is driving growth even as global economic conditions remain uneven.
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, noted that both rural and urban demand have contributed to the growth outlook, supported by ongoing fiscal stimulus and consumer confidence.
Growth Expectations vs Official Estimates
As per early estimates, India’s GDP for the full fiscal year FY26 is already expected to grow around 7.4 percent, with the third quarter forecast providing additional evidence of continued resilience in the economy.
Analysts point out that strong consumption trends, healthy demand across sectors, and government spending have all played a role in sustaining growth. While global headwinds — such as trade pressures and uneven overseas demand — remain a factor, domestic economic fundamentals appear supportive of near-term expansion.
Context: Broader Economic Outlook
India’s economy has been among the fastest-growing major economies in the world, and recent data showed robust GDP expansion in earlier quarters of FY26. In the second quarter, growth reached above 8 percent, driven by strong services and manufacturing performance.
While different agencies offer a range of growth estimates for the third quarter — with some private forecasts pegging figures slightly lower — the SBI Research projection underscores a positive outlook for India’s economic trajectory heading into the second half of the fiscal year.