More Stories

Informist, Friday, Feb. 7, 2025

 

Please click here to read all liners published on this story

--RBI Malhotra: FY26 GDP growth seen at 6.7%
--RBI Malhotra: Cuts Apr-Jun GDP growth forecast to 6.7% from 6.9%
--RBI Malhotra: Cuts Jul-Sept GDP growth forecast to 7.0% from 7.3%
--RBI Malhotra: Sees Oct-Dec GDP growth at 6.5%
--RBI Malhotra: Sees Jan-Mar FY26 GDP growth at 6.5%
--RBI Malhotra: MPC noted growth is expected to recover from Jul-Sept
--RBI Malhotra: MPC noted growth lower than FY24
--RBI Malhotra: MPC noted global fincl mkt volatility pose risk to growth, CPI
--RBI Malhotra: Global uncertainty pose downward risk to growth
--RBI Malhotra: Risks evenly balanced
--RBI Malhotra: Govt policy support augurs well for growth
--RBI Malhotra: Svcs exports buoyancy to support growth

--RBI Malhotra: At present, time has come to be more supportive of growth 

--RBI Malhotra: Can support growth as inflation has come down 

--RBI Malhotra: Certainly India can achieve 7% plus growth 

--RBI Malhotra: GDP forecast takes into account impact of rupee fall 

--RBI Malhotra: Income tax cut will help growth, not impact inflation 

 

 

NEW DELHI – The Reserve Bank of India Friday projected a GDP growth of 6.7% for the country in 2025-26 (Apr-Mar). The central bank also cut its growth view for Apr-Jun to 6.7% from 6.9% and that for Jul-Sept to 7.0% from 7.3%. 

 

For both Oct-Dec and Jan-Mar, the RBI has estimated a growth of 6.5%. The RBI's GDP growth projection for FY26 is within the 6.3-6.8% range projected by the finance ministry last week in the Economic Survey for FY25.

 

"Looking ahead, healthy rabi prospects and an expected recovery in industrial activity should support economic growth in 2025-26," RBI Governor Sanjay Malhotra said in his policy statement. "Among the key drivers on the demand side, household consumption is expected to remain robust aided by the tax relief in the Union Budget 2025-26." The government in the FY26 Budget has proposed to exempt tax on income up to INR 1.2 million.

 

India's GDP is expected to grow 6.4% in the current fiscal year, the slowest in four years, according to the first advanced estimates given by the statistics ministry. The slowdown in GDP expansion nudged the RBI's Monetary Policy Committee to unanimously agree to cut the policy repo rate for the first time in nearly five years on Friday, bringing it to 6.25% from 6.50%. The committee also voted to retain the 'neutral' policy stance, having adopted it in October from 'withdrawal of accommodation'.

 

The concerns over growth emerged after GDP grew at a seven-quarter low pace of 5.4% in Jul-Sept. But the MPC expects growth to recover from the level seen in the second quarter of FY25, Malhotra said. "Global headwinds, however, continue to impart uncertainty to the outlook and pose downward risks."

 

At a press conference after the MPC's decisions were announced, Malhotra said that India can certainly achieve growth of 7% and above in FY26. "Whether 7% is achievable? These are difficult questions to answer but nevertheless, I would like to stick my neck and say India can achieve 7% and plus growth rate," the governor said. "We should certainly aspire for that."

 

Malhotra said there are enough signs in the economy that give the central bank confidence that GDP growth next year will be in line with the RBI's 6.7% forecast. The central bank also took into account the depreciation in the rupee against the dollar for all its forecasts, the governor said. "We will continue to improve our macroeconomic models, nowcasts and forecasts, so as to be able to give as precise a number as possible," he said. 

 

Growth will find support from the income tax cuts announced in the Union Budget for FY26, Malhotra said.  End

 

Reported by Krity Ambey and Shubham Rana

Edited by Tanima Banerjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.