New Delhi, Aug 21
India’s GDP is expected to grow between 6.8 per cent-7 per cent in the first quarter this fiscal (Q1 FY26), due to higher discretionary spending which will drive demand-led growth in the country, a report said on Thursday.
The gross value added (GVA) growth is estimated at 6.5 per cent for the quarter, SBI Research said, adding that the gap between real and nominal growth will significantly narrow in Q1 FY26.
The peak elasticity of government capital expenditure to GDP has reached 1.17, making it imperative for private investment to support public capital expenditure for sustainable growth, according to the State Bank of India’s research arm.