Reserve Bank of India on Wednesday projected India’s GDP growth at 6.9% for FY27, lower than the estimated 7.6% for FY26, citing concerns over elevated commodity prices and supply chain disruptions linked to the West Asia crisis.

Announcing the first bi-monthly monetary policy for 2026–27, Sanjay Malhotra noted that merchandise exports could face pressure due to disruptions in key shipping routes, along with rising freight and insurance costs.

However, the central bank highlighted that domestic demand is likely to remain resilient, supported by continued strength in the services sector, the ongoing impact of GST rationalisation, improving capacity utilisation in manufacturing, and robust balance sheets of financial institutions and corporates.