India's real GDP is projected to grow by 7.2% in the fourth quarter of the 2025-26 fiscal year, according to a report by the State Bank of India (SBI). This growth reflects robust domestic demand, particularly in rural consumption, which has been bolstered by both agricultural and non-agricultural sectors. For the entire fiscal year FY26, GDP growth is expected to reach 7.5%, while the following fiscal year FY27 is anticipated to see a slight decline to 6.6% due to ongoing geopolitical challenges. The nominal GDP growth for Q4FY26 is estimated at 12.2%, with the 2026-27 nominal GDP projected around 11%. The International Monetary Fund (IMF) has also adjusted its growth forecast for India upwards to 6.5% for 2026-27, despite lowering the global growth forecast to 3.1% due to supply chain disruptions. The report highlights that while inflation remains a concern, particularly with fluctuations in crude oil prices and potential El Niño impacts, the strong rabi crop is expected to stabilize food supply in the near term.