# RBI raises FY27 growth forecast to 6.7%, says rupee may strengthen

2026-08-06T11:01:42+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 2 independent outlets

Reserve Bank of India governor Sanjay Malhotra told reporters after the central bank's August policy review that growth could touch 7% in FY27, even though the RBI's official estimate rose only to 6.7%, the Economic Times reported. He called the risks to that estimate evenly balanced and pointed to buoyant private consumption and better than expected first-quarter output. The central bank's quarterly path runs from 7% in the first quarter down to 6.4% in the second, 6.5% in the third and 6.8% in the fourth. Malhotra said food and fuel costs could keep headline inflation choppy, but that policy decisions would track underlying inflation instead. He also said the rupee has moved from about 97 to 95 against the dollar over the past month and could firm further if geopolitical tensions ease, though the RBI intervenes only to curb excessive volatility rather than defend a particular level. In remarks to The Hindu, he said strong institutions had helped the economy emerge stronger from past disruptions.

## Indian Opinion Analysis

Malhotra frames 7% as one end of a probability range built around a lower official estimate, so it describes possible upside rather than a policy target. The rupee's move to 95 similarly reflects trading conditions the RBI says it is not steering toward a preferred level, only smoothing against sharp swings. The narrower test is whether output in the second and third quarters lands close to the 6.4% and 6.5% marks the RBI has set out, and whether headline inflation eases back toward the underlying trend Malhotra says the bank is actually tracking.

## Coverage

- thehindu.com (neutral report) <https://www.thehindu.com/business/india-emerges-strong-from-each-disruption-has-very-strong-macroeconomic-fundamentals-rbi-governor/article71309112.ece>
- cfo.economictimes.indiatimes.com (neutral report) <https://cfo.economictimes.indiatimes.com/news/economy/rupee-may-strengthen-further-as-tensions-ease-says-rbi-governor-malhotra-rbi-to-intervene-only-against-excessive-volatility/132906176>
- cfo.economictimes.indiatimes.com (neutral report) <https://cfo.economictimes.indiatimes.com/news/economy/rbi-governor-sanjay-malhotra-says-india-growth-may-touch-7-nothing-to-worry-on-geopolitical-shocks/132905185>

Tags: RBI, Sanjay Malhotra
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