- The announcement was made during the Monetary Policy Committee (MPC) meeting chaired by Governor Sanjay Malhotra.
- The revision followed strong Q2 FY26 GDP growth of 8.2%, the highest in six quarters.
- Key drivers included robust domestic demand, GST rate cuts, and supportive monetary conditions.
- The RBI also cut the repo rate to 5.25% to boost investment and consumption.
- Meanwhile, the CPI inflation forecast was lowered to 2.0%, signaling macroeconomic stability.
- This positions India as one of the fastest-growing major economies globally in 2026.
Question:
Q1. On 5 December 2025, the RBI revised India’s GDP growth forecast for FY2025–26 to:a) 6.8%
b) 7.0%
c) 7.3%
d) 8.2%
Answer: c) RBI raised the GDP growth forecast for FY2025–26 to 7.3% from 6.8%.
