The Reserve Bank of India (RBI) raised its forecast for India's economic growth in fiscal 2026-27 by 40 basis points to 7.1% from 6.7% on Wednesday, citing resilient domestic activity and strong investment and consumption even as global trade uncertainty, geopolitical tensions, elevated commodity prices and weather risks pose headwinds to the outlook.
The Monetary Policy Committee (MPC) increased the policy repo rate by 25 basis points to 5.5% after a detailed assessment of evolving macroeconomic and financial conditions, developments and the outlook.
