BIZ DESK
Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that the country’s economic growth continues to be supported by resilient demand and it remains the world’s fastest-growing large economy. He said the country’s economy has performed better than expected in the April-June quarter of this fiscal. Presenting Monetary Policy statement, Mr. Malhotra said, RBI has decided to keep the repo rate unchanged at 5.25 percent.
The RBI Governor said, West Asia conflict continues to challenge global economy by disrupting key trade routes. He said, RBI has lowered CPI inflation projection to 5 percent from an earlier estimate of 5.1 percent for financial year 2027.
The RBI Governor said the central bank has projected real GDP growth at 6.7 per cent for FY27.
Highlighting domestic demand, Malhotra said, “Private consumption continued to be driven by buoyant discretionary. Overall, the Indian economy performed better than expected in Q1.”
He added that the renewed escalation of the conflict since the first week of July has increased volatility in energy prices.
Despite the economy’s resilience, he said growth is expected to be lower in the current financial year. “The outlook, however, is hazy because of the uncertainties regarding South’s global trade policy. There is a need for greater clarity to emerge, especially regarding inflation, its path and composition before taking any policy action,” Malhotra said.