India’s Central Bank Forecasts Growth Upturn Despite Global Risks

The Reserve Bank of India (RBI) raised its FY26 GDP growth forecast to 7.3%, up from 6.8%, citing strong rural demand and robust private investment. Along with this, the RBI cut its repo rate to 5.25% to encourage further economic expansion, while revising the CPI inflation outlook to 2%. This shift aims to mitigate external headwinds and maintain domestic growth momentum as the real GDP for Q2 FY26 registered an 8.2% increase.