Mumbai, June 6 (IANS). The Reserve Bank of India has maintained India’s GDP growth rate of 6.5 percent for FY 2025-26. Domestic economic activities remain strong as strong agricultural sector, industry and service sector continue.
According to the central bank, the GDP growth rate may be 6.5 percent in the first quarter of FY 2026, 6.7 percent in the second quarter, 6.6 percent in the third quarter and 6.3 percent in the fourth quarter.
RBI Governor Sanjay Malhotra said on Friday, “India’s actual GDP growth in the provisional estimates released by the National Statistics Office (NSO) is estimated to be 6.5 percent in 2024-25. During 2025-26, domestic economic activities have been strengthened so far. Agricultural sector has been strong. Agriculture has remained strong. Both kharif and rabi have become comfortable with very good crops. The level of the reservoir has remained better in the last four years.
Industrial activity is gradually increasing, even if the speed of improvement is unusual. The service sector is expected to maintain momentum.
He said that in May 2025, PMI services remained strong at 58.8, which is a sign of strong expansion.
The RBI Governor said that on the demand side, private consumption, which is the main basis of total demand, remains healthy with gradual increase in discretionary expenses (which allocates business on non-negative goods).
The rural demand remains stable, while urban demand is improving.
High frequency indicators suggest that investment activity is being revived.
Following a dull performance in recent times, there was a strong growth in trade exports in April 2025.
Non-oil, non-gold imports recorded double-digit increase, which reflects the status of domestic demand.
He said that the export of services remains on the path of strong growth.
RBI Governor Malhotra further said that later, the forecast for agricultural sector and rural demand is expected to be encouraged by the expectation of rainfall in the south-west monsoon more than normal.
On the other hand, continuous bounce in service activity is expected to reverberate in urban consumption.
He said that the government will help revive investment activity by the government that the government continuously emphasizes capital expenditure, high capacity usage, improving business optimism and making financial conditions easier.
The RBI Governor stated that the trade policy uncertainty is overshadowing the possibilities of business exports, while the conclusion of the Free Trade Agreement (FTA) with the United Kingdom and progress with other countries should promote business of goods and services.
He also said that long-standing geopolitical stress, global trade and damage to meteorological uncertainties pose risk for development.
-IANS
SKT/GKT
