Industry odisha Bureau, Jul 18: Despite having projected a 6.6% growth of India’s Gross Domestic Product (GDP) for the current fiscal year 2026-27 (FY27) amid various challenges, Reserve Bank of India (RBI) Governor Sanjay Malhotra has reportedly expressed that the renewed West Asia tensions as well as below-normal monsoon this year predicted by the India Meteorogical Department (IMD) are going to pose major risks to India’s growth rate.
In an interview to the Doordarshan (DD) News, the incumbent RBI Governor reportedly said that, “India has not only registered a 7.7 per cent growth rate in the last fiscal year of 2025-26 (FY26) propped up by a strong and sturdy macroeconomic fundamentals, it has also recorded over 7 per cent growth rate in the past few years even amidst the global uncertainties. Because of robust monetary and fiscal policies, India is witnessing high GDP growth.”
Talking on inflation, the RBI Governor in his DD News interview reportedly said that, “RBI has raised its inflation forecast to 5.1 per cent from its previous forecast of 4.6 per cent for the ongoing fiscal year 2026-27 (FY27). While inflation crossed RBI’s 4 per cent median target in June due to supply-side factors, retail inflation rose to 4.38 per cent in June from 3.93 per cent in May, chiefly owing to costlier food items, and food inflation increased to 5.32 per cent in June from 4.78 per cent in May.”
Citing weak monsoon posing as another major risk factor to India’s growth rate, the RBI Governor in his DD News interview reportedly said that, “India needs to be vigilant on monsoon, because agriculture contributes about 17 per cent to the country’s GDP.”
