India is fast becoming a central force in the global economy. According to a recent SBI Research report, India contributed approximately 6.5% to global economic growth during the financial year 2024–25. This growing share underscores India’s increasing influence and strength on the international stage.
As the global economy expanded by $418 billion in 2024–25, India alone added $27.9 billion—a 6.7% share of that total. This remarkable contribution positions India among the top countries driving global growth.
But what stands out even more is the role played by the State Bank of India (SBI), the country's largest lender. SBI alone accounted for 1.1% of the global GDP growth, contributing a massive $44 billion. This contribution is equivalent to the economic output of several smaller nations and reflects both the strength of the bank and India’s economic momentum.
SBI’s Role in India’s Growth
SBI’s performance has been instrumental in strengthening India’s position on the global front. The bank contributed:
- 16% to India’s GDP
- 8.7% to the Gross Value Added (GVA) of India’s financial services sector
In terms of GVA, SBI recorded ₹1.38 lakh crore in 2024–25, up from ₹1.32 lakh crore in 2023–24—a year-on-year growth of 5%. This increase highlights SBI’s significant role in not just supporting the economy but also driving job creation and expanding financial services.
Powering Digital and Loan Growth
SBI has played a pivotal role in boosting economic growth by promoting digital banking and loan distribution. Through innovation in digital services, the bank has enhanced financial accessibility and efficiency, making banking more inclusive and growth-oriented.
The report notes that SBI's strength can boost business and startups by offering low-interest loans and improved digital services. This can provide a big push to India’s middle class by offering affordable credit and better service delivery.
Benefits to Common Citizens and the Way Forward
With SBI’s growing impact, the benefits are expected to reach businesses, startups, and especially the middle and lower-income classes. Cheaper loans, easier access to services, and faster credit delivery can lead to:
- Increased entrepreneurship
- More job opportunities
- Boost in household income
However, there is a caveat. If inflation rises, it could dampen the benefits of this growth. Rising costs and increasing debt burdens can become a major concern for the middle class. That’s why it's critical that the current gains are transferred quickly and efficiently to the common man.
Taking Growth to Rural and Small Businesses
For long-term impact, the government and SBI need to extend this growth to rural areas and small businesses. Expanding credit and financial services to underserved regions can ensure more inclusive development. Affordable loans and reliable digital services in these areas can uplift local economies and generate employment.
Strengthening India’s Global Grip
To sustain this momentum, India must strengthen its hold on the global economy. Continuous innovation, investment in digital infrastructure, and strategic support to key sectors can help maintain India’s rising trajectory. Ultimately, a stronger global presence will translate into higher incomes and improved living standards for India’s citizens.
The SBI Research report paints a powerful picture of India’s growing influence in the world economy, driven by robust domestic performance and banking sector innovation. With institutions like SBI leading the charge, India is not only emerging as a key global player but also ensuring that the benefits of growth reach its citizens. If managed well, this could mark the beginning of a new era of inclusive, sustainable, and globally impactful growth for India.
Disclaimer:
This blog is based on information from the SBI Research report and public data sources. Figures mentioned are estimates and may be subject to revision. Always consult financial experts for investment or policy-related decisions.
