RBI Lifts India’s FY27 Growth Outlook to 6.7 Percent

The Reserve Bank of India raised its FY27 real GDP growth projection to 6.7 percent, up from a previous estimate of 6.6 percent. Governor Sanjay Malhotra announced the revision following a three-day Monetary Policy Committee meeting, citing strong domestic demand and consistent expansion across both manufacturing and services sectors as primary drivers.

Editorial·August 5, 2026·reads: 1,188

RBI Lifts India’s FY27 Growth Outlook to 6.7 Percent

Governor Malhotra noted that the economy is slated for a 7 percent growth rate in the first quarter, with a projected moderation to 6.8 percent by the final quarter of the financial year. While growth remains robust, the central bank simultaneously lowered its Consumer Price Index inflation forecast by 10 basis points to 5 percent for the year.

Despite the downward adjustment to the annual inflation forecast, the bank anticipates headline price pressures will climb in the near term. Malhotra attributed this expected peak in the third quarter largely to volatile food and fuel costs. However, underlying price stability appears intact, with core inflation—excluding these volatile items—holding steady at 3.9 percent through June. The RBI expects headline and core inflation metrics to converge by the end of the fiscal year, provided supply-side factors stabilize as projected.