EconomySaturday, 18 July 2026·The Hindu - Economy
RBI flags West Asia crisis, weak monsoon and 5.1% FY27 inflation forecast as key growth risks
RBI Governor Sanjay Malhotra said West Asia tensions and a weak monsoon are major risks, while FY27 inflation is projected at 5.1%.
Key highlights
Direct fact
In July 2026, RBI Governor Sanjay Malhotra said the West Asia crisis and a weak monsoon could affect India’s growth, while the RBI raised its FY27 inflation forecast to 5.1% from 4.6%.
Key specifics
- India’s GDP growth was 7.7% in the last financial year, according to the governor.
- The RBI projected GDP growth of 6.6% for the current financial year.
- Retail inflation rose to 4.38% in June from 3.93% in May, and food inflation increased to 5.32% from 4.78%.
- Overall bank credit grew around 18% year-on-year in June, compared with 17.5% in May.
- Gross FDI was around $95 billion last year, and net FDI in the first two months of the current financial year was around $7 billion.
Exam lens
TNPSC economy question: inflation forecast, GDP growth, credit growth and FDI figures are the key facts. Remember 5.1% FY27 inflation, 6.6% GDP projection, and June retail inflation at 4.38% for a quick MCQ.