Peak elasticity of government capital expenditure-to-GDP at 1.17 indicates private investment must complement public investment to take the economy onto an even higher sustainable growth path, a recent report by the SBI research department noted.
Private investors need to hold the baton now, going ‘glo-cally’ competitive as apostles of growth 2.0 world over, it said.
The gap between real and nominal GDP in India, which was as large as 12 percentage points in Q1 FY23, dropped sharply to 3.4 percentage points in Q4 FY25, said the report.
The credit growth of scheduled commercial banks (SCBs) slowed to 10 per cent as on July 25, 2025, compared to last year’s growth of 13.7 per cent.
On the other hand, aggregate deposits grew by 10.2 per cent YoY, compared to last year’s growth of 10.65 per cent YoY.
The sectoral credit growth for June 2025 indicates credit growth declined across sectors, except small and medium enterprises (SMEs). SME credit increased YoY by 21.8 per cent compared to last year’s growth of 14.2 per cent.
However, excluding bank credit, resource flow to commercial sector has expanded at 15.6 per cent in Q1 FY26. Credit growth to the MSME sector was at 21.8 per cent during the same period.
ALCHEMPro News Desk (DS)
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