RBI Projects 6.9% GDP Growth Amid Global Uncertainty

Reserve Bank of India Governor Sanjay Malhotra on Tuesday projected India’s GDP growth at 6.9% for the current financial year during the Monetary Policy Committee (MPC) announcements. Quarterly growth is expected at 6.8% in Q1, 6.7% in Q2, 7% in Q3, and 7.2% in Q4, supported largely by sustained momentum in the services sector despite global challenges.

Malhotra cautioned that elevated crude oil prices, disruptions in energy and commodity markets, heightened uncertainty, weaker global growth prospects, and spillover risks could weigh on India’s economic trajectory. He also noted that under the new GDP series, India’s growth for the previous year was estimated at 7.6%.

External forecasts remain mixed, with Goldman Sachs lowering India’s 2026 growth outlook to 5.9% following the US-Iran conflict and oil supply disruptions near the Strait of Hormuz. Meanwhile, SBI Research warned that higher oil prices could pressure India’s external balance, even as policymakers remain hopeful of stable growth momentum.

Pic courtesy: google/ images are subject to copyright