India’s Q3 FY26 GDP growth is likely at 8.1% amid strong domestic demand: SBI
&imwidth=600&imheight=450&format=webp&quality=medium "India’s Q3 FY26 GDP growth is likely at 8.1% amid strong domestic demand: SBI")
Representative image. Photograph: (Freepik)
The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector.
The State Bank of India (SBI) said on Tuesday that India's GDP is likely to grow by about 8.1 per cent in the third quarter of the current financial year (FY26), indicating strong growth momentum. The report noted that despite global challenges, the Indian economy has shown resilience, supported by strong domestic demand and consistent economic activity across multiple sectors.
According to a report in the news agency ANI, the SBI said "we expect Q3FY26 real GDP growth of closer to 8.1 per cent". Based on the SBI report, high-frequency economic indicators point to steady economic activity during the third quarter of FY26. Rural consumption has also remained strong, supported by encouraging trends in both agricultural and non-agricultural activities.
Similarly, urban consumption has slowly improved, aided by fiscal support and higher spending since the most recent festive season. The first advance estimates show India's GDP growth at 7.4 per cent in FY26, largely driven by domestic demand.
FY26 GDP are scheduled for release on February 27, 2026
The report underlined that household consumption remains a key pillar of economic growth, even as uncertainties persist in the global economy. It also noted that the second advance estimates for FY26 GDP are scheduled for release on February 27, 2026. These updated figures will include additional data and revisions, and GDP numbers for the first and second quarters are expected to be revised due to a change in the base year.
India has refreshed its GDP base year, updating it from 2011-12 to 2022-23, including the new series scheduled for release on February 27, 2026. The report also indicated that it is very hard to predict the direction of revisions in the GDP data.
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The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector. Additionally, the base year for the Consumer Price Index (CPI) of India was updated to 2024, which will assist in a more precise measure of inflation based on current consumption patterns.
