Inflation At Record Low, Growth Outlook Strong, RBI Upgrades India’s GDP Forecast To 7.3%

India’s economic outlook has strengthened, supported by robust domestic fundamentals and favorable monetary conditions, according to the latest RBI assessment. Healthy agricultural prospects, rationalization of GST, strong corporate balance sheets and benign inflation are expected to sustain momentum. The RBI has revised real GDP growth to 7.3% for the current fiscal, up 0.5% from earlier projections. Growth is projected at 7% for Q3 and 6.5% for Q4, while the next fiscal begins with forecasts of 6.7% in Q1 and 6.8% in Q2. On the external front, services exports are likely to stay strong despite pressures on merchandise trade. Inflation continues to soften, hitting an all-time low in October 2025, with risks broadly balanced.