India's GDP growth likely at 8.1% in Q3FY26 amid domestic demand boost: SBI report

Economic Growth Outlook - India's economy is projected to maintain strong growth momentum, with GDP expected to expand by around 8.1% in Q3FY26, supported by strong domestic demand and steady economic activity across sectors [1][10] - The first advance estimates indicate that India's GDP is projected to grow at 7.4% in FY26, primarily driven by domestic demand [5][10] Consumption Trends - High-frequency economic indicators suggest resilient economic activity during Q3FY26, with strong rural consumption supported by positive signals from both farm and non-farm activities [2][10] - Urban consumption has shown steady improvement, aided by fiscal stimulus and increased spending since the last festive season [2][10] GDP Base Year Revision - India has updated its GDP base year from 2011-12 to 2022-23, with new series scheduled for release on February 27, 2026, aimed at better reflecting the current structure of the economy [7][11] - The revision is expected to incorporate additional data and revisions, with previous quarterly GDP figures for the first and second quarters likely to change [6][10] Consumer Price Index Update - The base year for the Consumer Price Index (CPI) has been updated to 2024, which will provide a more accurate measure of inflation based on current consumption patterns [8][11] - The Reserve Bank of India (RBI) is examining the revision of the inflation targeting range following the CPI base year update, which will be considered in the next policy [8][11]