RBI Raises FY26 GDP Growth Forecast To 7.3 Percent
The Reserve Bank of India has revised its GDP growth projection for the financial year 2025-26 to 7.3 percent. The earlier estimate was 6.8 percent. The upward revision reflects strong momentum in the economy, supported by healthy domestic demand, government spending and a stable inflation environment.
Strong Economic Indicators
The decision follows higher-than-expected quarterly data. Growth in the second quarter reached one of the strongest levels in recent quarters, driven by manufacturing, construction and services. Inflation has remained under control, allowing room for growth without policy tightening. The RBI said current indicators show resilience across multiple sectors.
Impact On Businesses And Consumers
Economists believe the revision creates a favourable outlook for investment and credit growth. Lower borrowing costs, rising demand and stable prices could support expansion plans for companies. A strong growth forecast may also improve market sentiment and encourage domestic consumption. Banks are expected to continue providing credit access to businesses.
Caution On External Risks
Despite the positive outlook, the central bank has warned that risks from global uncertainty remain. External factors such as commodity prices, export demand and geopolitical developments could affect performance. The RBI said it will continue monitoring these trends while supporting financial stability.
