RBI raises FY26 GDP growth projection to 6.8 pc, lowers inflation forecast to 2.6 pc
GST
Dated:- 1-10-2025
PTI
Mumbai, Oct 1 (PTI) The Reserve Bank on Wednesday revised upward its growth estimates for the current fiscal year to 6.8 per cent and lowered its inflation projection to 2.6 per cent based on an above-normal monsoon and the rationalisation of GST rates.
In August, the Reserve Bank of India (RBI) projected a 6.5 per cent GDP growth rate for 2025-26, along with an inflation forecast of 3.1 per cent.
Announcing the bi-monthly monetary policy, Reserve Bank Governor Sanjay Malhotra said significant developments on the domestic front, amid a rapidly changing global economic landscape, have altered the narrative on growth-
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er cent.
Malhotra further said inflation conditions remained benign during 2025-26 so far, with actual outcomes turning out to be significantly lower than projected.
Low inflation, he said, is primarily attributed to a sharp fall in food inflation, aided by improved supply prospects and government measures to manage the supply chain effectively.
Core inflation remained largely contained with the August reading at 4.2 per cent, despite continued price pressures on precious metals.
“CPI inflation for 2025-26 is now projected at 2.6 per cent with Q2 at 1.8 per cent; Q3 at 1.8 per cent; and Q4 at 4.0 per cent,” Malhotra added. The Consumer Price Index (CPI) based inflation for the first quarter of 2026-27 is projected at 4.5 per cent. P
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