New Delhi, Aug 11 (IANS) India's first quarter FY27 gross domestic product growth is estimated at about 8 per cent, with underlying momentum broad‑based, a report said on Tuesday.
The report from SBI Research said 86 per cent of 50 leading indicators tracked by the bank across consumption and demand, agriculture, industry, services and other sectors showed acceleration in Q1 FY27 compared with 69 per cent in Q1 FY26.
The report added that consumption and demand remain resilient, services continue to support growth and industrial activity is broadly satisfactory apart from a few pockets.
"Services sector, the largest contributor to economic growth, revealed that except freight and passenger traffic all are in favour of an impressive growth for Q1," the bank said.
Government capital expenditure remained supportive as capex spending by 20 states was 10.5 per cent of budget estimates in Q1 FY27 versus 10.9 per cent in Q1 FY26, growing 5.5 per cent YoY.
The Central capex rose to 27.8 per cent of budget estimates from 24.5 per cent, registering 23.7 per cent growth.
Scheduled commercial banks’ credit growth accelerated to 17.7 per cent and deposits to 12.7 per cent for the fortnight ended July 15, 2026, the report said, adding that since Q2 FY26, credit continues to grow till now.
The projected FY27 aggregate deposit growth is estimated at 14.5–15 per cent and credit growth at 16–17 per cent. The quarterly results from selected banks indicate improvement in efficiency indicators across the banks.
Monsoon conditions have improved as nearly 40 per cent rainfall deficit in June was partly offset by surplus rainfall in July and normal rains in August, bringing the overall deficit down to around 12 per cent.
"Data of July high frequency indicators and monsoon progress suggest continued growth momentum. Thus, we believe that going forward growth is likely to be robust," the research firm said.
—IANS
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