RBI Governor: Urban Consumption Subdued, Mild Recovery In Manufacturing

The Reserve Bank of India Friday projected a GDP growth of 6.7% for the country in 2025-26, lowering it from 6.9% earlier. The central bank also cut its growth view for Apr-Jun to 6.7% from 6.9% and that for Jul-Sept to 7.0% from 7.3%. According to RBI, while consumption in rural markets continues to be on uptrend, urban consumption remains subdued with mixed signals. The central bank Governor Sanjay Malhotra said the Budget 2025 tax cuts bode well for consumption and corporate earnings suggest a mild recovery in manufacturing.