Mumbai, December 5 (Daily Kiran) – The Reserve Bank of India (RBI) has revised its Gross Domestic Product (GDP) growth forecast for the current financial year 2025-26 upward from 6.8 percent to 7.3 percent. The RBI made this revision considering the strong economic growth rate of 8.2 percent recorded in the July-September quarter.
RBI Governor Sanjay Malhotra announced the decisions taken during the three-day Monetary Policy Committee (MPC) review meeting held from December 3-5. He said that before reaching this decision, a comprehensive assessment of the country’s emerging macroeconomic conditions and future outlook was conducted.
The RBI Governor stated that strong consumption and Goods and Services Tax (GST) reforms have accelerated the country’s second quarter GDP growth rate. Therefore, the RBI has increased the GDP forecast for financial year 2025-26 to 7.3 percent, which is approximately half a percent higher than the previous estimate.
Reserve Bank Governor Sanjay Malhotra, while announcing policy decisions, said that the growth rate for the third and fourth quarters of financial year 2025-26 is estimated to be 7 percent and 6.5 percent respectively. For the first and second quarters of financial year 2026-27, GDP growth is projected to be 6.7 percent and 6.8 percent respectively.
Earlier, Malhotra said that domestic economic activities are stable, rural demand is strong, and urban demand is continuously improving. Considering this, the RBI has unanimously cut the policy rate (repo rate) by 0.25 percent. This has reduced the current interest rate from 5.5 percent to 5.25 percent.
This cut in policy interest rates has been made after a period of strong economic performance, supported by robust GDP growth of 8.2 percent in the second quarter of the current financial year and low inflation levels. The country’s retail inflation rate fell sharply to 0.25 percent in October 2025, which is a record minimum level.
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