Industry Odisha Bureau, Aug 22: Going by the ‘stronger-than-expected high-frequency indicators’, the Reserve Bank of India (RBI) is now reportedly optimistic of India’s economy outshining its earlier forecast of 6.7% in the ongoing fiscal year 2026-27 (FY27).
Quoting incumbent RBI Deputy Governor Poonam Gupta’s speech on August 20, media reports have stated that, “India’s economy based on stronger-than-expected high-frequency indicators could exceed RBI’s earlier forecast of 6.7% growth in FY27 and may move closer to 7-7.5%, and we should aspire to do better than that. The country is set to remain the world’s fastest growing major economy.”
Citing the RBI’s August 2026 Policy Meeting’s minutes released this week, media reports have also stated that, “India’s one-year overnight index swaps rate has jumped 11 basis points since the minutes, the most since May, indicating traders now expect a hike sooner than previously anticipated.”
It has been reportedly claimed that, “Manufacturing remains a key growth driver supported by stronger Index of Industrial Production (IIP) growth, improving Goods and Services Tax (GST) collections, robust automobile demand, and a sharp recovery in non-oil, non-gold exports. Private consumption is also expected to grow by 7.4% in Q1 FY27 supported by a strong uptick in credit growth and GST rationalisation.”
Reportedly, “The RBI has projected a real GDP growth of 6.7% for FY27, with growth estimated at 7% in the first quarter (Q1), 6.4% in the Q2, 6.5% in the Q3 and 6.8% in the Q4. The growth outlook comes against the backdrop of a triple shock of higher oil prices, US tariffs and extreme global uncertainty. The economic growth outlook for FY27 is closely watched with policymakers balancing continued expansion against global economic risks and domestic inflation pressure.”
