India's Economy Soars: SBI Caps Projects 7.4% GDP Growth for FY26

• SBI Capital Markets' Ecocapsule report estimates India's GDP growth at 7.4% for FY26, driven by easing inflation and strong domestic demand.
• Robust consumption, increased government infrastructure spending, good monsoon, and tax reforms are key growth drivers.
• Government capital expenditure surged by 28% year-on-year in the first 8 months of FY26, with significant investments in road and railway projects.
• Global economic growth is projected at 3.2% in 2025, with central banks worldwide, including India, cutting interest rates due to falling inflation.
• Deloitte India forecasts 7.5-7.8% growth for FY26, attributing it to strong festive demand and a robust service sector, while also noting India's significant trade agreements in 2025.

Why It Matters: India's economy is set for robust growth in FY26, fueled by strong domestic demand, government spending, and strategic trade deals.