New Delhi, Nov. 18 -- India's economy appeared on track to deliver another quarter of strong growth, with GDP expected to expand by around 7.5 percent in Q2 FY26, according to State Bank of India's latest report. SBI Research said this momentum had been supported by a revival in investment activity, strengthening rural consumption and the demand boost triggered by GST rationalization, which lifted festive spending across sectors. The research house maintained its full-year GDP outlook at 7.2-7.3 percent, suggesting that India continued to outperform major global economies.

However, even as growth surged, SBI flagged a key policy dilemma for the Reserve Bank of India (RBI): Was it already too late for a rate cut?

SBI Research noted that ...