New Delhi, Nov 11 — India's economy is likely to maintain strong growth momentum in the Q2 FY27 despite global uncertainties, with gross domestic product likely to expand by around 7.8 per cent, supported by resilient domestic demand, corporate performance and strong credit growth, a report said on Wednesday.
The report from SBI Research estimated GDP growth for Q2 FY27 at about 7.8 per cent, higher than the Reserve Bank of India's forecast of 7.2 per cent. Nominal GDP growth is projected at 11-11.5 per cent, while gross value added (GVA) growth is expected to exceed 8 per cent.
Real manufacturing GDP is likely to grow faster than nominal manufacturing GDP because the manufacturing deflator remains negative. It estimated the GVA deflator at 4.1 per cent and the GDP deflator at 3.4 per cent.
“Despite the recent moderation in input-output price differentials, input prices continue to remain higher than output prices across several manufacturing sectors, indicating incomplete pass-through of input cost pressures by producers,” the report said.
The gap remains particularly pronounced in electrical equipment, computer, electronic and optical products, furniture and fabricated metal products.
With strong credit growth banks have earned healthy profit in Q2 with PSBs outpacing private counterparts in terms asset quality, it noted.
The report said that Indian corporate performance for the Q2 FY27, shows strong resilience and broad-based growth with improved margins.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and PAT (Profit After Tax) of nearly 2300 listed entities ex-BFSI grew by 35 per cent and 33 per cent respectively in Q2FY27 as compared to Q2FY26.
“The district-level assessment reveals that the potential agricultural production losses are geographically dispersed across both Kharif and Rabi seasons. During Kharif, the highest production losses are concentrated in districts across Rajasthan, Punjab, Uttar Pradesh and Maharashtra,” the report noted.