Wed Apr 09 05:00:00 UTC 2025: ## RBI Cuts India’s Growth Forecast to 6.5%
**Mumbai, April 9, 2025** – The Reserve Bank of India (RBI) today lowered its growth forecast for India’s real GDP in the current fiscal year (2025-26) to 6.5%, down from the previous estimate of 6.7%. The revision, announced by RBI Governor Sanjay Malhotra following the first bi-monthly Monetary Policy Committee meeting, reflects concerns over global trade and policy uncertainties.
While acknowledging robust crop production and healthy reservoir levels promising a bright outlook for the agriculture sector, Governor Malhotra cited global headwinds as the primary reason for the downward adjustment. He noted that merchandise exports will be impacted by these uncertainties, although services exports are expected to remain strong. Manufacturing, however, shows signs of revival, and investment activity is gaining traction, supported by government infrastructure spending and healthy corporate balance sheets. The RBI projects quarterly growth rates of 6.5% (Q1), 6.7% (Q2), 6.6% (Q3), and 6.3% (Q4).
Despite the revision, the RBI maintains that risks are evenly balanced, although acknowledging significant uncertainties remain due to recent global volatility. The 20-basis-point reduction in the growth projection underscores the impact of the international economic climate on India’s growth trajectory.
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