RBI Governor Sanjay Malhotra on Wednesday said tariff-related developments are likely to decelerate growth in the second half of this fiscal, but GST and other policy reforms announced by Prime Minister Narendra Modi recently will offset impact of external factors on economic growth to some extent.

He also announced that the RBI has revised upwards its GDP forecast for FY26 to 6.8%, from 6.5% earlier.

Also Read: RBI Policy Today: Repo Remains At 5.5%, GDP Outlook Up, Inflation Lowered; 22 Reform Measures Unveiled

Announcing the fourth bi-monthly policy review of FY26, Malhotra said, “Economic growth outlook remains resilient helped by favourable monsoon, lower inflation and monetary easing… Domestic economic activities continue to sustain momentum in 2nd quarter of this fiscal."

H

See Full Page