Reserve Bank of India (RBI) raises FY26 GDP growth forecast to 7.3%

Key facts

• The Reserve Bank of India (RBI) revised India’s GDP forecast for FY2025-26 upwards to 7.3% from the earlier 6.8%.
• RBI raised Q3 FY26 growth estimate to 7.0% from 6.4%.
• RBI raised Q4 FY26 growth estimate to 6.5% from 6.2%.
• RBI raised Q1 FY27 growth projection to 6.7% from 6.4%.
• RBI projected Q2 FY27 growth at 6.8%.
• RBI’s Monetary Policy Committee (MPC) cut the policy repo rate by 25 basis points to 5.25%.
• India’s economy grew 8.2% in Q2 FY25, 7.8% in Q1 FY25, and 6.5% for full-year FY25.
• RBI announced Rs 1 lakh crore OMO purchases and a 3-year USD/INR swap of USD 5 billion.
• IMF projects India to become the world’s fourth-largest economy by end of 2025.