RBI Policy
Excerpts on GDP growth from MPC's statement
This story was originally published at 13:17 IST on 1 October 2025
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MUMBAI – Following are the excerpts on GDP growth from the statement issued by the Reserve Bank of India on Wednesday at the conclusion of the Monetary Policy Committee's fourth bi-monthly meeting for 2025-26 (Apr-Mar):
Economic activity has remained resilient, with growth of real GDP surprising on the upside at 7.8% and gross value added at 7.6% for Apr-Jun. As suggested by high frequency indicators available so far, domestic economic activity continues to sustain momentum in Jul-Sept.
Looking ahead, an above-normal monsoon, good progress of kharif sowing and adequate reservoir levels have further brightened prospects of agriculture and rural demand. Buoyancy in the services sector coupled with steady employment conditions are supportive of demand, which is expected to get a further boost from the rationalisation of GST. Rising capacity utilisation, conducive financial conditions, and improving domestic demand should continue to facilitate fixed investment. However, ongoing tariff and trade policy uncertainties will impact external demand. Prolonged geopolitical tensions and volatility in international financial markets caused by risk-off sentiments of investors pose downside risks to the growth outlook. The implementation of several growth-inducing structural reforms, including streamlining of GST, are expected to offset some of the adverse effects of the external headwinds.
Taking all these factors into account, real GDP growth for 2025-26 (Apr-Mar) is now projected at 6.8%, with Apr-Sept at 7.0%, Oct-Dec at 6.4%, and Jan-Mar at 6.2%. Real GDP growth for Apr-Jun of FY27 is projected at 6.4%. The risks are evenly balanced. End
Compiled by Srijita Bose
Filed by Tanima Banerjee
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