India's GDP growth for the second quarter of the current fiscal year is expected to be around 6.5 per cent, according to a report by the State Bank of India (SBI). The report acknowledged a slight dip in growth for Q2 but suggested that this slowdown might be temporary, citing a recovery driven by rising rural demand, which is seen as a sign of improved income levels.

"The blip in growth in Q2 might be an impasse. Tailwinds of recovery are now reinvigorated by a surge in rural demand, a proxy of better income levels," the report stated. The report also highlighted that October had shown signs of a recovery, and growth in the third and fourth quarters could bring the overall GDP growth for FY25 closer to 7 per cent.