India’s economy has weathered global shocks and is expected to achieve the full year 2026-27 GDP growth rate of 6. 6%, with a real GDP growth of about 7. 2% in the fourth quarter of the previous fiscal year (Q4 FY26), according to an SBI Research study published on Monday,

For the previous fiscal year (FY26), GDP growth is expected to be around 7. 5%. The Indian economy has continued to expand at a robust rate despite the challenges facing the world. According to high-frequency activity data, economic activity remained robust despite a little fall in Q4.

“Positive signals from agricultural and non-agricultural activities continue to support robust rural consumption. According to Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at State Bank of India (SBI), urban consumption has been consistently increasing since the previous holiday season, thanks to fiscal stimulus.

The increase in bank credit from scheduled commercial banks (SCBs) increased to 16. 1% in FY26 from 11. 0% in FY25. The overall increase in credit was Rs 29. 5 lakh crore, but the increase in credit in the first half of the year was only Rs 5 lakh crore, with the remaining Rs 24. 5 lakh crore coming in the second half.

Credit continued to rise in the second half of fiscal year 26 as a result of increased government spending as a result of the Goods and Services Tax (GST). According to the report, the same trend is still continuing now, with a 16% increase in credit as of April 30, 2026.

“Nonetheless, we predict that credit growth will remain strong in the first half of FY27 and will slow in the second half due to the high base effect. The research predicted that credit will grow at 13–14% throughout the year.

Despite external shocks, particularly the West Asian crisis, it is anticipated that domestic consumption will continue to push GDP increase.

Additionally, the SBI report model predicts that a $10 increase in crude oil prices per barrel might increase inflation by 35–40 basis points, the current account deficit by 35 basis points, and GDP by 20–25 basis points.

The report predicted that India’s GDP will grow at 6. 6% in FY27, with an average oil price of roughly $100 per barrel, assuming that the oil price is about $105 per barrel in May.