RBI Deputy Governor says India's near-term growth outlook is promising

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India's near-term growth outlook is promising and growing at a stronger than anticipated rate of 7.8 per cent during Q1:2025-26, various high frequency indicators point towards a robust expansion in Q2:2025-26 as well, noted Poonam Gupta, Deputy Governor, Reserve Bank of India in a latest speech. In the latest monetary policy statement, growth forecast for FY2025-26 has been revised upwards to 6.8 per cent. Inflation currently is at an eight-year low of 1.5 per cent. As per the latest assessment of the RBI, CPI inflation is projected to be 2.6 per cent for the full year 2025-26, much below the target. India's policy frameworks have continued to evolve and are currently among the global best. Its exchange rate, that was pegged until 1991, is increasingly market driven. Its external account has been managed well. There are inherent strengths in its diversified balance of payments. On the current account, the merchandise trade deficit has been balanced by strong services exports and remittances receipts. Oil price is not a dampener that it used to be. All in all, the current account shows resilience and is eminently in a sustainable zone. As a result of the full matrix of policy reforms, India's GDP and per capita income growth rates have accelerated over time; growth has been among the highest globally; and its variability has declined, she opined.

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