RBI MPC: Gov Malhotra raises GDP growth projection for this year to 6.7% from 6.6%

RBI MPC announcements: The Reserve Bank of India Governor Sanjay Malhotra announced the Monetary Policy Committee's latest projections. The real GDP growth rate for this year has been revised to 6.7 per cent, which is 10 bps higher than the previous projection of 6.6 per cent.

The Indian economy performed better than expected in the first quarter. He, however, warned about an unfavourable impact on agriculture in the coming quarter. Buoyancy in services sector may support urban consumption, said the RBI Governor. He added that renewed tensions in West Asia, volatility in global markets and El-Nino downside risks to growth.

He projected the growth outcome as follows:

Q1: 7 per cent from 6.6 per cent 
Q2: 6.4 per cent from 6.3 per cent 
Q3: 6.5 per cent from 6.5 per cent
Q4: 6.8 per cent from 6.8 per cent

West Asia conflict continues to challenge global economy by disrupting key trade routes, said the RBI chief. He added that India continues to remain the world's fastest growing large economy.