RBI revises FY26 GDP growth forecast to 7.4% from 7.3% earlier

The Reserve Bank of India (RBI) has revised GDP growth forecast for the ongoing financial year to 7.4% from 7.3% today. Real GDP growth for Q1 FY27 has also been revised to 6.9% from 6.7% and Q2 to 7% from 6.8%, with risks evenly balanced. The central bank noted that sustained buoyancy in services sector, GST rationalisation, healthy rabi prospects, monetary easing and benign inflation environment should support private consumption. Investment activity, supported by high-capacity utilisation, conducive financial conditions, healthy balance sheets of financial institutions and corporates, robust credit growth and Governments continued thrust on capital expenditure, is expected to maintain its momentum. Moreover, robust domestic demand is likely to attract fresh investments by the private sector.

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