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

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.