The Reserve Bank of India (RBI) on Wednesday raised India's GDP growth forecast for the current fiscal year by 40 basis points to 7.1 per cent, while stating that the Indian economy has remained resilient in navigating the global headwinds. However, he flagged the persisting global uncertainties and the El Nino impact on agricultural output as a risk to the economic outlook.

"Real GDP growth for 2026-27 is projected at 7.1 per cent; Q2 at 7.2 per cent; Q3 at 6.9 per cent; and Q4 at 6.8 per cent. The upward revision in growth forecast by 40 bps further underscores the strength of economic activity despite significant headwinds. Real GDP growth for Q1:2027-28 is projected at 7.1 per cent. The risks are evenly balanced," RBI Governor Sanjay Malhotra said after the three-day Monetary Policy Committee (MPC) meeting.