India’s GDP cut to 6.5%, inflation to 4% as RBI adjusts economic projections amid global uncertainties

The Reserve Bank of India (RBI) has cut its estimates on both India’s Gross Domestic Product (GDP) and inflation, measured by the Consumer Price Index (CPI), Governor Sanjay Malhotra announced on Wednesday during his monetary policy address.

The RBI cut its Real GDP forecast for the financial year 2025-26 to be 6.5%, from 6.7% earlier, with the first quarter forecast estimated to be at 6.5% second quarter at 6.7%, third quarter at 6.6%, and fourth quarter at 6.3%.

Meanwhile, inflation estimates was cut from 4.2% earlier to 4% now. The first quarter estimate is at 3.6%, second quarter is at 3.9%, third quarter is at 3.8%, and the fourth quarter is slightly higher at 4.4%.