RBI raises FY27 GDP estimate to 6.7% holds repo 5.25%
The RBI just bumped its FY27 GDP growth estimate to 6.7% and kept the repo rate steady at 5.25%.
Inflation is expected to cool down a bit to 5%.
But some leading economists think India might actually outpace these numbers, thanks to strong spending at home and a good outlook for agriculture.
Economists predict near 7% India GDP
Economists Samiran Chakraborty, Chief Economist at Citi India, and Shailendra Jhingan, Head of Treasury and Economic Research at ICICI Bank, predict GDP could hit 6.9% or even cross 7% in FY27, pointing to solid economic data and better farm prospects.
Still, inflation isn't totally off the radar: Former RBI Executive Director and IIM Kozhikode professor Mridul Saggar cautions that if prices stay high, more policy tightening could be on the cards.
Meanwhile, State Bank of India (SBI) Chairman CS Setty notes that rising credit and fresh overseas deposits are giving banks extra momentum through the rest of FY27.