{"id":85042,"date":"2025-11-19T00:00:00","date_gmt":"2025-11-19T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/state-bank-of-india-sees-economy-growing-7-2-in-2q\/"},"modified":"2025-11-19T00:00:00","modified_gmt":"2025-11-19T00:00:00","slug":"state-bank-of-india-sees-economy-growing-7-2-in-2q","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2025\/11\/19\/state-bank-of-india-sees-economy-growing-7-2-in-2q\/","title":{"rendered":"State Bank of India sees economy growing 7.2% in 2Q."},"content":{"rendered":"

Good morning, friends. <\/strong>We have a packed issue dominated by energy, IPO, and electronics manufacturing news leading the way on this midweek morning. <\/p>\n

India\u2019s energy sector in India is bustling<\/strong>, with headlines including a new long-term LPG <\/strong>supply agreement<\/strong> with the US and Jackson\u2019s investment of INR 80 bn (USD 903 mn) in a solar manufacturing facility in central India. Pundits are looking at the IPO boom with a critical eye even as PhysicsWallah made a strong debut. And 17 projects in India have secured approvals under the subsidy scheme for electronics manufacturing. <\/p>\n

Also making headlines this morning: <\/strong>SBI is forecasting 7.5% growth in 2Q<\/strong> with flattening employment numbers despite a widening trade deficit. There are more Indian firms in Abu Dhabi<\/strong>. And Iran is eyeing cryptocurrencies to settle trade deals with BRICS partners, including India. <\/p>\n

^^ We have the rundown on all of this below.<\/p>\n

HAPPENING THIS MORNING- Tenneco Clean Air India shares will make their debut<\/strong> on the Mumbai stock exchanges and the ET Global Capability Centers and Bengaluru Tech summits also kick off today.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- State Bank of India, the nation\u2019s largest lender, sees real GDP <\/strong>growth in India hitting 7.5% in 2Q FY2026 <\/strong>(July to September), Hindu Businessline<\/a> reports. The bank\u2019s call is underlined by a pick-up in investment activity, the ongoing recovery in rural consumption, and sustained growth in the services and manufacturing sectors. Reforms to the \u201cindirect taxation system\u201d also bolstered consumption. <\/p>\n

IN CONTEXT- <\/strong>India already notched a very strong 1Q, with the economy expanding at a 7.8% clip compared to 6.5% the same period a year ago<\/p>\n

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#2- Merchandise trade deficit surges thanks to gold imports, US tariffs: <\/strong>India\u2019s merchandise trade deficit ballooned to a record USD 41.6 bn in October from USD 32.1 bn in September, driven by a jump in gold imports and a sharp fall in US-bound exports during the second month of 50% US tariffs imposed on Indian goods, the Ministry of Commerce and Industry said<\/a>. Merchandise exports slipped to USD 34.3 bn while imports rose to USD 76 bn. <\/p>\n

Oil, gold imports up:<\/strong> Gold imports climbed to USD 14.7 bn in October from USD 9.6 bn in September, while crude imports rose to USD 14.8 bn from USD 14 bn in September, Reuters<\/a> reports.<\/p>\n

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#3- India\u2019s unemployment rate held steady at 5.2% in October<\/strong> for those aged 15 and above, unchanged from September according to the Periodic Labour Force Survey<\/a>. Labour force participation increased for the fourth straight month to 55.4% in October. Rural unemployment rate saw a marginal dip to 4.4% in October from 4.6% the month before, while the rate in urban rates inched up to 7.0% from 6.8%.<\/p>\n

IN CONTEXT: <\/strong>The unemployment rate has hovered in a relatively narrow 5.1-5.6% band since April despite uneven hiring momentum across sectors. <\/p>\n

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<\/a> #4- India to rich nations: You first.<\/strong> New Delhi wants developed economies to hit net zero \u201cfar earlier\u201d than current timelines and scale up climate finance from \u201cbns to tns\u201d to help the Global South catch up, Bloomberg<\/a> reports. Speaking at the COP30 summit in Brazil, Environment Minister Bhupender Yadav argued that deeper cuts by wealthy nations are essential to preserve \u201ccarbon space\u201d for developing economies.<\/p>\n

Where India stands:<\/strong> The world\u2019s third-largest emitter \u2014 which has a 2070 net-zero target \u2014 intends to publish its revised climate targets (NDCs) for the 2031-2035 period by next month. The government estimates it needs over USD 10 tn to meet its long-term climate goals. Hindu Businessline<\/a> also has the story. <\/p>\n

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#5- Iran is making headlines in India with a pitch to use crypto to settle trade with BRICS<\/strong> partners<\/strong>, getting pickup in <\/a>The Hindu<\/a> and Business Standard<\/a>, among others. File this under \u201cwishful thinking\u201d:<\/strong> Tehran is looking for a sanctions workaround, but New Delhi has been clear that de-dollarization is not on its agenda.<\/p>\n

Speaking of Iran: Tehran has suspended visa-free entry for ordinary Indian passport <\/strong>holders from November 22<\/strong> after what Business Today<\/a> writes was a spike in cases of Indians being duped with fake job offers or onward-travel assurances. Indians must now obtain a visa for entry or transit.<\/p>\n

YOU\u2019RE READING EnterpriseAM MENA <> India, your c-suite briefing on the movement of trade, investment, people, and ideas along one of the world\u2019s most exciting corridors. Every Monday, Wednesday and Friday at 9am UAE, we dive deep into the business, finance, economy, and policy headlines and trendlines that will move markets and set the tone for your day. <\/p>\n

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Arab businesses and governments alike look at India and see not just the world\u2019s largest <\/strong>population, but one of the planet\u2019s most compelling business stories. <\/strong>Whether it\u2019s investment in energy, technology, manufacturing, or banking, MENA businesses and governments are deploying capital in India on a scale never-before seen. They\u2019re eager to attract the subcontinent\u2019s best and brightest to invest and do business in the Arab world \u2014 and who wouldn\u2019t want to sell into India, whether you\u2019re exporting energy, petrochemicals, or production inputs?<\/p>\n

EnterpriseAM MENA <> India is for C-suite execs and entrepreneurs \u2014 and bankers, business development pros, founders, and builders. Whether you\u2019re reading us in Abu Dhabi, Riyadh, Mumbai, New Delhi, or points in between, this is your daily dose of fact and inspiration if you care about what happens along this exciting corridor.<\/p>\n

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SIGN OF THE TIMES-<\/p>\n

<\/a> Reliance Industries pivots to Kuwait as US sanctions squeeze Russian flows.<\/strong> India\u2019s largest private refiner has secured 1 mn bbl of heavy crude from Kuwait Petroleum Corporation (KPC) as it scrambles to replace Russian barrels ahead of a looming US sanctions deadline, Reuters<\/a> reports. The rare spot deal includes 500k bbl of Kuwait Heavy and 500k bbl of Eocene crude, which became available after unplanned maintenance at KPC\u2019s Al Zour refinery.<\/p>\n

Why it matters:<\/strong> The US pressure campaign is working. Reliance has effectively hit pause<\/a> on Russian orders to comply with US Treasury sanctions on Moscow\u2019s oil majors (Rosneft and Lukoil) before a 21 November wind-down deadline. <\/p>\n