India’s central bank yesterday raised its real GDP growth projection for 2025-26 to 7.4 percent, signalling confidence in the durability of domestic demand even as global trade uncertainties and financial market volatility cloud the external outlook, as it held interest rates steady.

The revised forecast marks a modest upgrade from the 7.3 percent growth estimate announced in December, reinforcing the Reserve Bank of India’s view that Asia’s third-largest economy remains relatively insulated from global headwinds.

The RBI also revised upward its early outlook for 2026-27, projecting real GDP growth of 6.9 percent in the first quarter and 7 percent in the second, compared with its earlier estimates of 6.7 percent and 6.8 percent, respectively.

The central bank said economic activity is expected to hold up well into the next financial year, supported by sustained momentum in consumption and investment.