Wed Nov 19 06:00:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

India’s Economy Poised for Strong Growth: SBI Projects 7.5% GDP Surge in Q2 FY26

New Delhi: The Indian economy is showing strong signs of growth, with the State Bank of India (SBI) projecting a GDP expansion of around 7.5% for the second quarter (July-September) of fiscal year 2025-26. A recent SBI research report cites robust investment activity, improving rural consumption, and revisions in Goods and Services Tax (GST) rates as key drivers of this growth.

The report also highlights the continued momentum in both the service and manufacturing sectors, coupled with a significant improvement in demand-based indicators. These indicators have surged from approximately 70% in the first quarter to 83% in the second quarter.

“Festive spending, particularly on cards, electronics, automobiles, furnishings, and e-commerce, has seen a noticeable increase, especially in tier-II and tier-III cities,” the SBI report stated. Furthermore, SBI suggests that if the current momentum persists, the actual growth figures could even surpass the projected 7.5%.

However, rating agency ICRA paints a slightly more conservative picture. ICRA estimates that the GDP growth rate will decelerate to 7% in the same period, a decrease from the 7.8% growth recorded in the first quarter. This anticipated slowdown is primarily attributed to reduced government spending.

ICRA expects the service and agricultural sectors to experience a slight dip, while industrial performance, driven by manufacturing and construction, will remain strong due to favorable comparative bases. “We expect GDP growth to moderate to 7.0 per cent YoY in Q2 FY2026 from 7.8 per cent in Q1 FY2026,” ICRA said in a statement. India’s GDP grew at 5.6% in Q2 FY25.

While the two institutions differ slightly in their exact forecasts, both point to a continuing positive trend in the Indian economy.

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