India's Festive Boost: GDP Growth Hits New High

India's GDP growth is set to surpass 7.5% in the second fiscal quarter, driven by festive sales following a GST rate cut. The growth is fueled by increased investment, rural consumption recovery, and buoyant services and manufacturing sectors, showcasing optimism and economic resilience amid structural reforms.

India's GDP is anticipated to exceed 7.5% growth in the current fiscal's second quarter, spurred by festive sales after a GST cut, according to a State Bank of India (SBI) research report. This robust growth is supported by increased investments, a revival in rural consumption, and buoyant services and manufacturing sectors, all bolstered by GST rationalisation.

The SBI report reveals that leading indicators of consumption and demand have shown acceleration, with an increase from 70% to 83% between the first and second quarters. It projects real GDP growth could surprise on the upside, while the Reserve Bank forecasts a 7% growth for the quarter.

GST collections are expected to reach around Rs 1.49 lakh crore for November, driven by festive demand. Consumption gains during the festive season have been evident in credit and debit card spending patterns, with e-commerce playing a key role in this economic upturn, and growth in mid-tier city demand.

(With inputs from agencies.)