RBI Ups FY26 Growth Forecast to 7.4%, Holds Rates Steady Amidst Global Tensions

• The Reserve Bank of India (RBI) revised its GDP growth forecast for FY26 upwards to 7.4% from 7.3% in its first policy review of 2026.
• Real GDP growth for Q1 FY27 is projected at 6.9% (up from 6.7%) and Q2 at 7% (up from 6.8%), with risks evenly balanced.
• RBI Governor Sanjay Malhotra noted the Indian economy's robust position with strong growth and low inflation despite heightened geopolitical tensions.
• Economic activity shows resilience, driven by private consumption, fixed investment, and a strong services sector, with manufacturing also reviving.
• The Monetary Policy Committee (MPC) maintained steady rates, citing benign inflation and easing concerns from US tariffs due to new trade agreements.