Last Updated:
India’s GDP may grow at a pace of 7.5 percent in the second quarter of this financial year. This claim has been made in a report of SBI. It is clear from this that it is absolutely impossible to stop the pace of India’s development.
New Delhi. The country’s GDP growth rate is expected to be 7.5 percent or more in the second quarter of the current financial year. The main reason for this is the sharp increase in festive sales due to the cut in GST rates at the end of September. This was said in a report by SBI Research on Tuesday. The report said that the acceleration in investment activities, improvement in rural consumption and rapid growth in services and manufacturing sectors are strengthening. This is also being helped by structural reforms like rationalization of GST. This boosted demand during festivals and overall has a positive impact on the economy.
Consumption and demand increased
SBI’s Economic Research Department report said, ‘With good sales data during festivals, the percentage of key indicators showing uptick in consumption and demand in agriculture, industry and services increased to 83 percent in the second quarter from 70 percent in the first quarter. Based on the estimated model, we estimate real GDP growth of about 7.5 percent in the second quarter of FY 2025-26. There is a possibility of increase in this. The government will release GDP (gross domestic product) figures for the July-September quarter later this month. The Reserve Bank of India has estimated seven percent economic growth for the second quarter. According to the report, the analysis indicates that the gross domestic goods and services tax (GST) collection for November may be around Rs 1.49 lakh crore, which is an increase of 6.8 percent on an annual basis.
Benefits of GST reforms
With this, IGST of Rs 51,000 crore and cess on imports, November’s GST collection could cross Rs 2 lakh crore. The reason for this is the high demand during festivals due to low GST rate. It also said that during the festive season (September-October), there has been a large increase in consumption with the rationalization of GST rates. The first indication of this comes from analyzing credit and debit card spending patterns. In credit cards, merchandise categories like vehicles, grocery stores, electronics, furnishing and travel indicated huge growth on e-commerce platforms. About 38 percent of the expenditure was on public utilities and services. After this, the share of supermarkets and groceries was 17 percent and that of travel agents was about nine percent.
credit card expenses increased
City-wise credit card spending shows that demand has increased across all sectors. But it is increasing the most in medium cities. E-commerce sales have been largely positive in all cities. The report said that ‘with the rationalization of GST, debit card spends have also shown an increase in all major states in September-October this year compared to the same period of the last financial year.’ It also said that India’s macroeconomic outlook remains cautious with possibilities. The reason for this is strong domestic demand and decreasing inflationary pressure. This growth is being supported by strong investment activity, improvement in rural consumption and a pick-up in services and manufacturing. GST 2.0 reforms are expected to boost private consumption and domestic demand.
