Archive · 11 Jun 2025
SBI MF Economist Shares Economic Outlook
India's economy is expected to grow steadily in the coming year, though global events create uncertainty.
Inflation should stay low.
Companies are not increasing investments as fast as before, and the government aims to manage its debt carefully.
To keep growing, India needs to focus on education and skills, according to analysts at SBI Mutual Fund.
India's real GDP growth is projected around 6.5% in FY26, amidst global challenges.
Inflation is expected to stay below 4% for most of FY26, supported by favorable monsoons and softening global prices.
Private sector capex growth is anticipated to decelerate to mid-single-digit in FY26 and FY27.
The government is committed to fiscal consolidation, targeting a debt-to-GDP ratio of 51% by FY31.
Focus on education and skills is needed to sustain India’s long-term growth.
- Who
- Namrata Mittal, Chief Economist at SBI Mutual Fund.
- What
- India's economic outlook, inflation, capex trends, and key policy reforms.
- When
- Next 12-18 months (FY26).
- Where
- India.
- Why
- To understand India's economic prospects, challenges, and potential policy shifts.
Potential Challenges
Market Positivity
Capex Growth
Potential Challenges
Private sector capex expected to decelerate.
Market Positivity
Government capex should continue.
- Real GDP Growth (FY26)
- Around 6.5%
- Expected Inflation (FY26)
- Below 4%
- Debt-to-GDP Target
- 51% by FY31
- Govt Fiscal Deficit Goal (FY27 onwards)
- Near 4%
Sources
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