RBI Revises FY27 GDP Growth Forecast Up To 6. 7%; Sees Indian Economy Staying Resilient
NewsbusinesseconomyRBI Revises FY27 GDP Growth Forecast Up To 6. 7%; Sees Indian Economy Staying ResilientLast Updated:August 05, 2026, 10:16 ISTThe outlook broadly aligns with recent projections by the. . .
NewsbusinesseconomyRBI Revises FY27 GDP Growth Forecast Up To 6. 7%; Sees Indian Economy Staying ResilientLast Updated:August 05, 2026, 10:16 ISTThe outlook broadly aligns with recent projections by the International Monetary Fund (IMF), which expects India's economy to remain the fastest-growing among major economies. Rapid ReadRapid ReadSummarized by AI. +RBI projects GDP growth for current fiscal year. RBI outlook aligns with IMF growth projections. IMF expects India to be fastest-growing economy. Finance Minister Nirmala Sitharaman informed Parliament this week that the IMF expects India to cross the USD 5 trillion economic milestone in 2028-29. The Reserve Bank of India (RBI) on Wednesday raised its GDP growth forecast for the current financial year to 6. 7 per cent, up by 10 basis points from its previous projection, as Governor Sanjay Malhotra said the Indian economy had performed better than expected in the first quarter despite a challenging global environment. Announcing the Monetary Policy Committee’s (MPC) decision, Governor Malhotra said the re-escalation of geopolitical conflicts and their impact on global supply chains had weighed on the world economy, creating fresh uncertainty for growth and inflation. However, he noted that India’s economy had remained resilient and delivered stronger-than-expected growth in the April-June quarter. Recommended StoriesRBI Cuts FY27 Inflation Forecast To 5%: What Governor Sanjay Malhotra Said On West Asia, El Nino RisksWord Of The Day: Repo Rate Meaning, RBI Impact On EMI, Loans And SavingsRBI Policy: Reserve Bank Keeps Interest Rates Unchanged At 5. 25%, Stance Stays As 'Neutral'RBI Policy August 2026 LIVE Streaming: Watch Governor Sanjay Malhotra's Speech Live HereHe said, “The re-escalation of the West Asia conflict since the first week of July has amplified volatility in energy prices and renewed uncertainty about supply chains. Amidst persistent global uncertainty, domestic economic activity has exhibited resilience as reflected by the high frequency indicators available for Q1. "The Governor said the outlook for the agriculture sector remains clouded due to the monsoon, although government measures are expected to mitigate the impact of deficient rainfall. He added that the manufacturing sector could face cost pressures amid global uncertainties, while the services sector is expected to maintain its strong momentum. The RBI’s revised projection comes as policymakers seek to balance the need to support economic activity with persistent global risks, including volatile crude oil prices, geopolitical tensions and supply chain disruptions. The central bank has maintained that domestic demand remains resilient even as external developments continue to warrant close monitoring. The RBI’s growth outlook is broadly in line with the International Monetary Fund’s (IMF) view that India will remain the world’s fastest-growing major economy. In its latest World Economic Outlook, the IMF projected India’s GDP growth at 6. 4 per cent in 2026-27 and 6. 7 per cent in 2027-28, while warning that an expanding conflict in West Asia, elevated oil prices and a weaker-than-normal monsoon linked to El Niño pose downside risks. Earlier this week, Finance Minister Nirmala Sitharaman informed Parliament that, according to the IMF’s April 2026 World Economic Outlook, India is expected to cross the USD 5 trillion economic milestone in 2028-29, with GDP at current prices projected to reach around USD 5. 1 trillion. She said the government’s strategy to sustain high growth is centred on improving agricultural productivity, expanding manufacturing, strengthening MSMEs, accelerating infrastructure and logistics development, simplifying the tax framework, promoting innovation and digitalisation, enhancing human capital and ensuring energy security. News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismLocation :Delhi, India, IndiaFirst Published:August 05, 2026, 10:16 ISTDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More