{"id":63809,"date":"2025-10-01T08:34:55","date_gmt":"2025-10-01T08:34:55","guid":{"rendered":"https:\/\/earlypostdaily.com\/index.php\/2025\/10\/01\/rbi-fy26-gdp-growth-inflation-forecast\/"},"modified":"2025-10-01T08:34:55","modified_gmt":"2025-10-01T08:34:55","slug":"rbi-fy26-gdp-growth-inflation-forecast","status":"publish","type":"post","link":"https:\/\/earlypostdaily.com\/index.php\/2025\/10\/01\/rbi-fy26-gdp-growth-inflation-forecast\/","title":{"rendered":"RBI Increases FY26 GDP Growth to 6.8% and Inflation to 2.6%"},"content":{"rendered":"<p><strong>The Reserve Bank of India (RBI)<\/strong> has raised its gross domestic product (GDP) growth forecast for the fiscal year 2025-26 to <strong>6.8%<\/strong>, down from an earlier estimate of 6.5%. Alongside this, it has also revised its inflation forecast down to <strong>2.6%<\/strong>, based on a positive monsoon and adjustments in Goods and Services Tax (GST) rates. The announcement came during the bank&#8217;s monetary policy review on Wednesday.<\/p>\n<p>In August, the RBI projected a GDP growth rate of 6.5% for the current fiscal year with an inflation prediction of 3.1%. This shift signals optimism about India\u2019s economic resilience amidst global uncertainties.<\/p>\n<p>Reserve Bank Governor <strong>Sanjay Malhotra<\/strong> emphasized that domestic developments are shaping India&#8217;s growth-inflation narrative. He remarked, \u201cBuoyed by good monsoon, the Indian economy continues to exhibit strength with a higher growth rate in the first quarter of 2025-26.\u201d<\/p>\n<p>Governor Malhotra highlighted that the moderation in inflation is particularly noteworthy. He pointed out that low inflation rates stem primarily from a significant drop in food inflation, aided by improved supply chains and effective government measures to stabilize the market.<\/p>\n<p>\u201cThe rationale behind the GST rate rationalisation plays a crucial role in tempering inflation while bolstering consumption,\u201d he stated, noting that while positive domestic conditions exist, external factors such as US tariffs could temper export performance.<\/p>\n<p>Under the revised projections, the RBI anticipates quarterly GDP growth rates of <strong>7.0% in Q2<\/strong>, <strong>6.4% in Q3<\/strong>, and <strong>6.2% in Q4<\/strong> of 2025-26. For the first quarter of 2026-27, the GDP growth is expected at 6.4%.<\/p>\n<p>Regarding inflation rates, core inflation remained manageable, with August data showing it standing at <strong>4.2%<\/strong>, despite persistent price pressures in the precious metals market. The wider Consumer Price Index (CPI) inflation will follow a quarterly pattern, estimated at <strong>1.8% in Q2 and Q3<\/strong>, and is expected to rise to <strong>4.0% in Q4<\/strong>.<\/p>\n<p>These projections align well with the RBI\u2019s goal of maintaining price stability while supporting economic growth. By successfully navigating current economic challenges, the RBI aims to foster a favorable environment for sustained growth in the coming fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The RBI boosts GDP growth projection to 6.8% for FY26, attributing this to favorable monsoon conditions and GST rationalisation while lowering inflation expectations to 2.6%.<\/p>\n","protected":false},"author":1,"featured_media":63808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-63809","post","has-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/63809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/comments?post=63809"}],"version-history":[{"count":0,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/63809\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/media\/63808"}],"wp:attachment":[{"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/media?parent=63809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/categories?post=63809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/earlypostdaily.com\/index.php\/wp-json\/wp\/v2\/tags?post=63809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}