The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has raised its growth projection for India's Gross Domestic Product (GDP) to 7.3% for the financial year 2025-26 (FY26), RBI Governor Sanjay Malhotra announced on Friday, December 5. He said rural demand is healthy, urban demand is improving, and the private sector activity is gaining steam.

Quarterly projections for FY26 were also revised, with growth estimated at 7% for the third quarter, followed by 6.5% in the fourth quarter, and 6.7% and 6.8% in the first and second quarters of the next fiscal year, respectively.

The central bank lowered its inflation forecast for the financial year to 2%, down from 2.6% earlier, citing more than expected ease in price pressures. On the policy front, the MPC unanimously decided to cut

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