India’s GDP forecast raised to 7.3% by RBI

Current Context: On 5 December 2025, the Reserve Bank of India (RBI) raised India’s GDP growth forecast for FY2025-26 to 7.3%, up from 6.8%.

• 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%.