RBI revises FY26 growth forecast upwards to 7.4%

Mumbai: The Reserve Bank of India (RBI) on Friday revised GDP growth forecast for the ongoing financial year to 7.4 percent from 7.3 percent earlier in the first policy review of 2026. Real GDP growth for Q1 FY27 has been revised to 6.9 percent from 6.7 percent and Q2 to 7 percent from 6.8 percent, with risks evenly balanced.

The MPC deferred GDP projection for full year to April review after the release of new series, RBI governor Sanjay Malhotra said. He said, amid heightened geopolitical tensions and elevated uncertainty, the Indian economy remains in a robust position with strong growth and low inflation.

"Since the last policy meeting, external headwinds have intensified, though successful trade deals and Budget measures to boost manufacturing and exports bode well for the economic outlook. Overall, the near-term domestic inflation and growth outlook remain positive," he said.