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RBI Elevates FY27 Real GDP Growth Forecast To 7.1 Percent Amid Strong Domestic Demand
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News18•07-10-2026, 10:16
RBI Elevates FY27 Real GDP Growth Forecast To 7.1 Percent Amid Strong Domestic Demand
- •The Reserve Bank of India upgraded its FY27 real GDP growth forecast from 6.7 percent to 7.1 percent, reflecting confidence in the national economy.
- •The revised projection aligns with the latest World Bank and OECD estimates, surpassing the International Monetary Fund's more cautious outlook.
- •The central bank also increased the repo rate by 25 basis points to 5.50 percent and shifted its monetary policy stance to calibrated tightening.
- •India recorded a robust real GDP growth of 7.8 percent in the first quarter of FY27, driven by strong domestic demand and resilient economic activity.
- •The rate hike accompanies the growth upgrade as a precaution against potential inflationary pressures and rising global energy costs.
Key Questions Answered
The Reserve Bank of India raised its FY27 real GDP growth forecast to 7.1% from its earlier projection of 6.7%.
The RBI implemented a 25-basis-point increase in the repo rate to 5.50% and shifted its monetary policy stance from Neutral to Calibrated Tightening.
The RBI hiked rates because stronger economic activity could coexist with elevated inflationary pressures, with concerns over rising global inflation and whether higher input and energy costs would spread more broadly through the economy.
