New Delhi [India], April 8 : Real GDP growth for the current year is projected at 6.9 per cent, the Governor of Reserve Bank of India, Sanjay Malhotra, said on Wednesday.
The Governor projected that the growth trajectory for the year showed a steady pattern across all four quarters. The central bank estimated first-quarter growth at 6.8 per cent, followed by 6.7 per cent in the second quarter. Projections for the third and fourth quarters stood at 7 per cent and 7.2 per cent, respectively. Under the new GDP series, growth for the 2026 fiscal year was estimated at 7.6 per cent.
"Headline inflation for January and February stayed below the target at 2.7 per cent and 3.7 per cent, respectively," Malhotra stated. "Inflation in fuel terms remained modest during this period. For the full year, the Consumer Price Index inflation is projected at 4.6 per cent."
The quarterly inflation outlook placed the first quarter at 4 per cent and the second quarter at 4.4 per cent. Price pressures are expected to rise to 5.2 per cent in the third quarter before moderating to 4.7 per cent in the final quarter. The Governor warned that elevated energy and other commodity prices are likely to impact growth this year, particularly as imported crude oil prices could push inflation higher.
The Reserve Bank of India also kept the policy repo rate unchanged at 5.25 per cent in the first monetary policy announcement of the financial year 2026-27, citing rising global uncertainties and geopolitical tensions.
Announcing the decision, Malhotra said that the Monetary Policy Committee (MPC) unanimously voted to maintain the policy repo rate under the liquidity adjustment facility at 5.25 per cent.
Governor stated, "After the detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged under the liquidity facility at 5.25 per cent. Consequently, the SDR rate remains at 5 per cent and the MSF rate and the bank rate at 5.5 per cent".
"Consequently, the Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the bank rate at 5.5 per cent," he said.
The MPC meeting was held on April 6, 7 and 8 to assess the evolving macroeconomic and financial conditions before arriving at the decision.
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