SBI Research Forecasts 7.8% GDP Growth, 33% Rise In Corporate Profits In Q2

The report estimated that India's nominal GDP would expand by 11 per cent to 11.5 per cent during the quarter. (Image Source: iStockphoto)

India's economy is expected to maintain strong growth momentum in the second quarter of the financial year 2026-27, with GDP expansion projected at approximately 7.8 per cent, according to a latest assessment by SBI Research. The report points to healthy activity across key economic sectors, although rising manufacturing expenses and potential agricultural losses could create challenges in the months ahead. The research report estimates Gross Value Added (GVA) growth at 8-8.2 per cent for Q2 FY27, while nominal GDP growth is projected to range between 11 per cent and 11.5 per cent. Unlike real GDP, nominal GDP also accounts for changes in prices and inflation.

The estimates are based on SBI Research's Dynamic Factor Model, which tracks 54 high-frequency indicators covering agriculture, industry and services to assess the economy's performance.

"Our Dynamic Factor Model using 54 high frequency indicators across agriculture, industry and services indicate Q2 FY27 GDP growth ~7.8 per cent. GVA growth may be between 8 per cent to 8.2 per cent. We are expecting the nominal GDP growth in the range of 11-11.5 per…

Original source: https://www.timesnownews.com/business-economy