RBI lifts FY26 growth to 7.6%, cites strong demand and reforms
RBI lifts FY26 growth to 7.6%, cites strong demand and reforms
RBI Governor Sanjay Malhotra notes India's economy expanded by 7.6% last year, driven by consumption, investment and reforms, while flagging risks from energy prices and potential supply disruptions.
The Reserve Bank of India has upgraded its FY26 GDP growth estimate to 7.6% from 7.4%, citing a resilient economy powered by strong consumption, investment, and structural reforms. Governor Sanjay Malhotra says the latest data show the country rode a broad-based recovery with supportive financial conditions backing activity across sectors. The upgrade reflects the RBI’s confident view that momentum in consumer spending and private investment will keep lifting growth next year.
However, the central bank also warned that elevated energy prices, commodity inflation, and possible supply disruptions through the Strait of Hormuz could weigh on the outlook. The government is actively working to secure critical input supplies and smoothen channels of trade to reduce disruption risks, a move the RBI says will help anchor the trajectory despite external pressures.
Even with external headwinds, the RBI says momentum in the services sector, GST rationalisation benefits, and strong corporate and financial balance sheets will continue to support activity. The rate-setting panel’s stance signals a careful balance between growth optimism and the need to monitor inflation and financial stability as the year unfolds.
Overall, the update signals a cautious optimism as the RBI aims to sustain momentum while managing external risks.
