New Delhi: India has demonstrated economic resilience through successive global and domestic challenges and will continue to be among the world's fastest-growing economies, SBI Research said in a special report marking the country's 80th Independence Day, pointing to strong growth, rising credit and deposits, robust corporate performance and an improving monsoon outlook.
"India was. India is. And India will continue to be one of the fastest-growing economies in the world," SBI Research said, while describing the country's macroeconomic story as one of resilience despite elevated global uncertainties.
SBI recently projected real GDP growth at 8 per cent in the first quarter of FY27. It said credit demand remained strong, with credit growth at 19.3 per cent for the fortnight ended July 31, while bank deposit growth rose to 15.4 per cent.
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The research also highlighted the impact of foreign currency inflows under the special FCNR(B) deposit mobilisation scheme. As of August 13, FCNR(B) deposits mobilised stood at USD 52.3 billion, while total mobilisation, including overseas foreign currency bonds and external commercial borrowings, reached USD 56.8 billion.
Even after the scheme's one-month truncation, SBI Research expects FCNR(B) mobilisation to reach USD 65-70 billion by its end, with total mobilisation including OFCBs and ECBs potentially reaching USD 80-85 billion. It said the RBI had recouped around USD 31 billion in foreign currency assets as of August 7.
The report said the stronger deposit and foreign-currency funding position could also support the government securities market, with the 3-7 year segment likely to benefit most from lower supply pressure and maturity matching, followed by the 7-10 year segment.
SBI Research also pointed to a reversal in foreign portfolio investor flows following measures announced by the RBI and government. Among 2,257 listed non-BFSI companies, net sales, EBITDA and profit after tax grew 24 per cent, 9 per cent and 4 per cent, respectively, in Q1 FY27.
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The rural outlook has also improved. The nationwide monsoon deficit narrowed to around 13 per cent after a sharp deficit in June was partly offset by surplus rainfall in July and normal rains in August. Kharif sowing was only 2 per cent below the year-ago level, which SBI Research said pointed to better irrigation coverage.
The report noted that the number of taxpayers earning Rs 100 crore and above rose 39 per cent to 576 in assessment year 2026, while those earning Rs 1 crore and above increased 14 per cent to 5.36 lakh.
The report, while celebrating the economy's resilience, noted that the current environment still requires credible and sustainable macroeconomic mechanisms.
