RBI Growth Forecast 7.4% for 2025-26, Rates Unchanged
Why in the news
India’s central bank upgraded its growth outlook for the current financial year to 7.4% and left its policy interest rates unchanged.
Key facts
- Real GDP growth projection for 2025-26: now 7.4 percent, revised upward.
- Policy stance on rates: held steady, with no change announced.
- Reasoning: the central bank sees durable domestic demand as a strength.
- Headwinds on the external side: uncertainty in global trade and volatility in financial markets.
Significance
- A higher projection shows the RBI is optimistic about internal consumption despite a cloudy global picture.
- Keeping rates unchanged shows a cautious approach while growth remains resilient.
Exam angle
- Figure to remember: 7.4% real GDP growth for 2025-26.
- Decision type: status quo on interest rates.
- Institution: Reserve Bank of India, the central bank.