RBI Projects India's GDP Growth at 6.9% for FY27 Amid Global Challenges

Original: RBI Projects Real GDP Growth At 6.9% For 2026-27 Vs 7.6% In FY26: Governor Sanjay Malhotra

News 18•Apr 8, 20261 min

In a Nutshell

The Reserve Bank of India (RBI) forecasts a real GDP growth of 6.9% for the financial year 2026-27, down from 7.6% in FY26. Governor Sanjay Malhotra highlighted the resilience of the Indian economy despite global challenges and announced that the repo rate will remain unchanged at 5.25%.

Key Points

01RBI projects GDP growth for FY27 at 6.9%, lower than 7.6% in FY26.
02Quarterly growth estimates for FY27 are 6.8% in Q1, 6.7% in Q2, 7% in Q3, and 7.2% in Q4.
03The repo rate is maintained at 5.25%, reflecting a neutral policy stance.
04The RBI emphasizes the Indian economy's improved ability to handle global shocks.
05This is the first monetary policy review for FY27.

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Full Summary

The Reserve Bank of India (RBI) has projected a real GDP growth rate of 6.9% for the financial year 2026-27, a decrease from 7.6% in the previous fiscal year 2025-26, as announced by Governor Sanjay Malhotra. The RBI's growth estimates for the upcoming quarters are 6.8% for Q1, 6.7% for Q2, 7% for Q3, and 7.2% for Q4. During the first bi-monthly monetary policy review of FY27, the RBI's Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 5.25%, aligning with market expectations. Malhotra noted that while the global economy is facing unprecedented challenges, the Indian economy is now better positioned to withstand such shocks compared to previous years. This policy stance remains neutral, indicating a cautious approach to future economic conditions.