India’s economy is expected to maintain strong momentum in the coming financial year, with the Reserve Bank of India (RBI) projecting growth of 6.9% despite ongoing geopolitical challenges and global economic uncertainties. The assessment was made in the central bank’s latest annual report, which outlined the country’s economic outlook and key growth drivers.
The report noted that domestic demand, macroeconomic stability and policy support continue to provide strength to the Indian economy even as external risks remain elevated. The RBI’s outlook comes at a time when several global economies are facing slower growth and persistent uncertainties.
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RBI projects 6.9% growth for FY26
In its annual report, the RBI said India is expected to register economic growth of 6.9% during FY26. The central bank pointed to strong domestic fundamentals and continued resilience across sectors as important factors supporting the growth outlook.
The report suggested that India remains one of the fastest-growing major economies in the world despite challenges emerging from geopolitical developments and global market volatility. Economic activity has continued to benefit from robust consumption, investment activity and government-led infrastructure spending, as per News18.
Domestic demand remains a key driver
According to the RBI, domestic demand continues to play a critical role in supporting economic expansion. Private consumption and investment have remained important contributors to growth, helping offset some of the risks arising from external uncertainties.
The report indicated that steady progress in infrastructure development and improvements in economic conditions have strengthened the foundation for sustained growth. Policymakers have also focused on maintaining macroeconomic stability while supporting economic activity.
Global uncertainties remain a concern
While presenting a positive outlook, the RBI acknowledged the challenges posed by geopolitical tensions and developments in the global economy. Ongoing conflicts, supply chain disruptions and fluctuations in international commodity prices continue to present risks for countries around the world.
The report observed that these factors could affect global trade, investment flows and economic sentiment. However, India’s relatively strong domestic economic base has helped cushion the impact of several external shocks in recent years, according to News18 reports.
Inflation and stability remain in focus
The annual report also highlighted the importance of maintaining price stability alongside growth. The RBI has continued its efforts to manage inflation while ensuring adequate support for economic expansion.
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According to the report, maintaining macroeconomic stability remains essential for sustaining long-term growth prospects. With domestic demand showing resilience and economic activity remaining steady, the central bank expects India to continue navigating global headwinds while preserving its growth trajectory.
The projection reinforces confidence in the Indian economy’s ability to withstand external pressures while continuing on a path of stable expansion.
