The Reserve Bank of India (RBI) has retained its GDP growth forecast at 6.7% for FY27, reflecting confidence in the country’s economic fundamentals despite global uncertainties.

The projection was announced after the latest Monetary Policy Committee (MPC) meeting, where the central bank highlighted strong domestic demand, improving investment activity and healthy macroeconomic indicators as key drivers of growth.

According to the RBI, economic activity continues to remain resilient, supported by robust consumption, steady government spending and a pickup in private sector investments. The central bank also pointed to a favourable monsoon, improving rural demand and strong performance in the services sector, which are expected to support growth in the coming quarters.

The RBI expects agriculture to benefit from better rainfall, while manufacturing and infrastructure spending are likely to remain supported by public and private capital expenditure. The services sector, which contributes the largest share to India’s economy, is also expected to continue its healthy expansion.

Alongside the growth outlook, the RBI reiterated its commitment to maintaining price stability. The central bank noted that while inflation has moderated, it will continue to closely monitor food prices, global commodity markets and geopolitical developments that could affect inflationary pressures.

The unchanged growth forecast comes at a time when many major economies are witnessing slower expansion due to high interest rates and geopolitical uncertainties. In comparison, India’s economy continues to be among the fastest-growing major economies, supported by strong domestic demand and ongoing structural reforms.

Going forward, the RBI believes that sustained investments, stable inflation and continued policy support will help India maintain its growth momentum. While external risks remain, the central bank’s latest projections reinforce confidence in the country’s medium-term economic outlook and its ability to navigate global challenges.

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