Archive · 6 Jun 2025
RBI Projects 6.5% GDP Growth for FY26 Amid Rural and Investment Boost
The Reserve Bank of India (RBI) thinks India's economy will keep growing at a good pace, about 6.5% next year.
This is because people are buying things, farmers are doing well, and companies are starting to invest more.
Rural areas are stable and cities are getting better too.
The RBI believes that good harvests and strong domestic demand are key drivers for economic expansion.
Although there are some risks to this, such as global events, the RBI believes India is on the right track to grow.
RBI projects India's economy to grow by 6.5% in FY26.
The growth is supported by resilient domestic demand and healthy agricultural output.
Investment activity is reviving, as indicated by high-frequency indicators.
Rural demand remains steady, while urban demand is improving.
Risks to growth include geopolitical tensions and global trade uncertainties.
- Who
- Reserve Bank of India (RBI)
- What
- RBI projects India's economy to grow by 6.5% in FY26.
- When
- FY26 (Fiscal Year 2026)
- Where
- India
- Why
- To support economic growth and manage inflation.
Risks to Growth
N/A
Growth Risks
Risks to Growth
Spillovers from geopolitical tensions, global trade, and weather uncertainties pose downside risks to growth.
N/A
N/A
- Projected GDP Growth (FY26)
- 6.5%
- Projected GDP Growth (Q2 FY26)
- 6.7%
- Projected GDP Growth (Q3 FY26)
- 6.6%
- Projected GDP Growth (Q4 FY26)
- 6.3%
Sources
Lower wage growth impacting consumption; tax cuts and rate cuts tools to spur growth: Report
RBI's MPC to keep its focus on growth momentum; 25 bps rate cut likely: CareEdge Ratings
RBI's MPC to focus on supporting growth momentum; 25-bps repo rate cut likely: Report
Campus hiring 2025: Salary offers rise for MBAs and BTechs after flat 2024, says Deloitte report
RBI sees retail inflation dropping below tolerance band to 3.7% in FY26 on softening food prices