2 weeks ago
SBI says India remains among world's fastest growing economies
Economists at a big Indian bank called the State Bank of India studied how the country's money machine is working, and they found it is doing really well.
They think India's economy will grow by eight per cent in the next three months, which is very fast.
People and companies are borrowing more money from banks, and people are also saving more money.
A lot of money from other countries is coming into India, mostly through special bank deposits.
India has saved up a huge pile of foreign money, worth 707 billion dollars.
Big companies in India are earning more money than before.
The rain has also been better this year, which helps farmers grow more food.
Because of all this, the bank says India was, is, and will keep being one of the fastest growing economies in the world.
SBI's Economic Research Department projects 8 per cent real GDP growth for India in Q1 FY27, based on its Nowcasting model.
Credit growth stood at 19.3 per cent for the fortnight ended 31 July 2026, while deposit growth accelerated to 15.4 per cent.
$52.3 billion has been mobilised under RBI's FCNR(B) concessional swap facility till 13 August, with total expected to reach $65-70 billion.
Foreign institutional investor (FII) flows have visibly reversed from outflows to inflows following measures by the RBI and Government.
India's forex reserves stand at $707 billion, the monsoon deficit has narrowed to around 13 per cent, and kharif sowing is only 2 per cent below last year.
- Who
- State Bank of India's Economic Research Department, led by Group Chief Economic Adviser Soumya Kanti Ghosh
- What
- Released a report asserting India remains one of the world's fastest growing economies, projecting 8 per cent real GDP growth in Q1 FY27
- Where
- India
- When
- Published on August 15, 2026
- Why
- Driven by strong credit and deposit growth, record foreign-currency capital inflows, high forex reserves, supportive corporate results and monsoon recovery
Key facts
- Projected Q1 FY27 real GDP growth
- 8 per cent
- Credit growth (fortnight ended 31 July 2026)
- 19.3 per cent
- Deposit growth
- 15.4 per cent
- FCNR(B) mobilised till 13 August
- $52.3 billion
- Expected total FCNR(B) mobilisation
- $65-70 billion
- Forex reserves
- $707 billion
- FII flows
- Reversed from outflows to inflows
- Nationwide monsoon deficit
- Around 13 per cent
Quotes
Soumya Kanti Ghosh
Group Chief Economic Adviser, State Bank of India
“"Record Capital inflows under RBI scheme at $57 billion and counting; credit growth at scorching 19 per cent, deposit growth at 15 per cent; forex reserves at $707 billion, buoyant corporate results, monsoon recovery are all holding up."”
thehindubusinessline.com
“"The surge in bank deposits and foreign‑currency funding should lower the counterfactual level of G‑Sec yields through deposit‑to‑yield transmission gaining credence."”
thehindubusinessline.com









