Mumbai, December 5 (Udaipur Kiran) – The Reserve Bank of India (RBI) has revised upward its Gross Domestic Product (GDP) growth estimate for the current financial year 2025-26 from 6.8 percent to 7.3 percent. The RBI made this revision considering the strong economic growth rate of 8.2 percent recorded in the July-September quarter.
RBI Governor Sanjay Malhotra announced the decisions taken during the three-day Monetary Policy Committee (MPC) review meeting held from December 3 to 5. He said that before arriving at this decision, a comprehensive assessment of the country’s emerging macroeconomic conditions and future outlook was conducted.
The RBI Governor stated that strong consumption and Goods and Services Tax (GST) reforms have led to acceleration in the country’s second quarter GDP growth rate. Therefore, the RBI has increased the GDP estimate for financial year 2025-26 to 7.3 percent, which is approximately half a percent higher than the previous estimate.
Reserve Bank Governor Sanjay Malhotra, while announcing policy decisions, said that the growth rate for the third and fourth quarters of financial year 2025-26 is estimated to be 7 percent and 6.5 percent respectively. For the first and second quarters of financial year 2026-27, GDP growth is estimated to be 6.7 percent and 6.8 percent respectively.
Earlier, Malhotra had said that domestic economic activities are stable, rural demand is strong, and urban demand is continuously improving. Considering this, the RBI has unanimously cut the policy rate repo rate by 0.25 percent. This has reduced the current interest rate from 5.5 percent to 5.25 percent.
This cut in policy interest rates has been made after a period of strong economic performance, which was supported by robust GDP growth of 8.2 percent in the second quarter of the current financial year and low inflation levels. The country’s retail inflation rate dropped sharply to 0.25 percent in October 2025, which is a record minimum level.
(Udaipur Kiran) / Prajesh Shankar
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