The Reserve Bank of India (RBI) on Wednesday kept its GDP growth projection for FY2025-26 unchanged at 6.5%, while revising its inflation forecast downward to 3.1% from the earlier estimate of 3.7%.

Presenting the third bi-monthly monetary policy for the fiscal year, RBI Governor Sanjay Malhotra noted that strong domestic economic activity continues to be supported by an above-normal southwest monsoon, easing inflation, improving capacity utilisation, and favourable financial conditions.

He further added that ongoing supportive monetary, regulatory, and fiscal measures—along with robust government capital expenditure—are expected to drive demand. The services sector is likely to remain strong, buoyed by continued momentum in construction and trade in the coming months.