RBI lowers GDP growth forecast to 6.5% for 2025-26

RBI has projected GDP growth for 2025-26 at 6.5 percent. RBI has said that this downward revision of its earlier assessment of 6.7 percent essentially reflects the impact of global trade and policy uncertainties. RBI has said that the growth prospects of the agriculture sector remain bright on the back of healthy reservoir levels and robust crop production. manufacturing activity is also showing signs of revival, while services sector activity continues to be resilient. Going forward, net services and remittance receipts are expected to remain in large surplus, partly offsetting the trade deficit with the current account deficit – CAD for 2024-25 and 2025-26, expected to



remain well within the sustainable level.

Stating that the global economic outlook is fast-changing, RBI Governor Sanjay Malhotra said the recent trade tariff-related measures have added to uncertainties, posing new headwinds for global growth and inflation. 

Explaining the reason for the rate cut, Mr. Malhotra said the challenging global economic conditions, benign inflation and moderate growth outlook demanded that the MPC continues to support growth, adding that monetary policy can play a vital anchoring role in ensuring that the economy remains on an even keel.