EconomySaturday, 30 May 2026·The Hindu - Economy

RBI Annual Report 2025-26 projects 6.9% GDP growth for FY27 despite West Asia conflict risks

The RBI’s Annual Report 2025-26 projects India’s real GDP growth at 6.9% in 2026-27, with CPI inflation at 4.6%.

Key highlights

Direct fact

Released on May 29, 2026, the Reserve Bank of India’s Annual Report 2025-26 projected India’s real GDP growth at 6.9% for 2026-27 and CPI inflation at 4.6%, despite risks from the West Asia conflict.

Key specifics

  • The RBI said the West Asia conflict, which began at the end of February 2026, is a key downside risk.
  • IMF baseline projections cited by RBI put global growth at 3.1% in 2026, down from 3.3% in January 2026.
  • Global merchandise and services trade volume is expected to decelerate to 2.8% in 2026.
  • Global inflation is projected at 4.4% in 2026, higher than the IMF’s January 2026 estimate of 3.8%.
  • The report links India’s resilience to strong domestic demand, capital expenditure and healthy corporate and banking balance sheets.

Exam lens

MCQ focus: RBI Annual Report 2025-26, GDP forecast 6.9%, CPI inflation 4.6%, IMF global growth 3.1%, and the West Asia conflict as an external risk. TNPSC may ask which report released on May 29, 2026 gave these projections.

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