RBI Cuts GDP Growth Forecast to 6.5% for 2025-26 Due to Rising Global Uncertainties

The Reserve Bank of India (RBI) has lowered its forecast for India’s GDP growth in 2025-26 to 6.5%. This decision comes as global uncertainties, such as economic slowdowns and geopolitical tensions, continue to rise.

The RBI initially predicted a higher growth rate for the Indian economy. However, with increasing challenges around the world, the central bank has revised its forecast. Factors like global inflation, supply chain disruptions, and geopolitical conflicts have contributed to this shift. The RBI’s new estimate of 6.5% reflects the current global situation, which could have a negative impact on India’s growth.

RBI officials have pointed out that while India’s economy remains resilient, global events still play a significant role in shaping the country’s economic future. The central bank also mentioned that uncertain factors, such as changes in oil prices, international trade policies, and the economic performance of key global markets, could continue to influence India’s growth prospects.

Despite these challenges, the RBI believes that India’s economy will continue to expand, although at a slightly slower pace. The central bank highlighted that domestic factors, such as strong consumption and ongoing investments in infrastructure, will help drive growth in the coming years. However, external factors remain unpredictable, and their impact could limit the economy’s overall performance.

The RBI also emphasized the importance of carefully monitoring global developments and adjusting policies accordingly. The central bank has already taken steps to manage inflation and stabilize the economy, but it is aware that external uncertainties could affect the nation’s recovery and growth.

In conclusion, the RBI’s revised growth forecast reflects the challenges posed by the uncertain global environment. While India’s economy is expected to continue growing, the pace of that growth may be slower than initially anticipated due to factors beyond the country’s control. The RBI will continue to monitor the situation closely and adjust its policies as needed to support the economy.