MMBAIMBAI MAMMBAI MAMUSH :�The Reserve Bank on Wednesday reduced India's development estimate for the current financial year from 6.7 percent to 6.5 percent due to the impact of global trade and policy uncertainties. RBI Governor Sanjay Malhotra unveiled the results of the first bilateral monetary policy committee meeting for the current financial year, saying that in 2025-26, the possibilities of agriculture sector remain bright due to healthy reservoir levels and strong crop production in 2025-26. He said that manufacturing activity has been indicated by improving and commercial expectations remain strong, while service sector activity remains flexible.

He said that investment activity has accelerated and constant high capacity usage, continuous emphasis on infrastructure, healthy balance sheets of banks and corporates and ease of financial conditions are expected to improve further. “Global uncertainties will affect business exports due to global uncertainties, while the exports of services are expected to continue. The adverse conditions arising from global trade disruptions will continue to pose a risk downwards.” He said that keeping all these factors in mind, the actual GDP growth for 2025-26 is now estimated at 6.5 percent, with the first quarter 6.5 percent, the second quarter 6.7 percent, the third quarter 6.6 percent and the fourth quarter 6.3 percent.

“While the risk are equally balanced around these basic estimates, uncertainty remains high in view of the recent increase in global instability. It is worth noting that the growth estimates for the current year have been reduced by 20 basis points relative to our earlier assessment of our earlier 6.7 percent,” he said. He said that this amendment downwards essentially reflects the impact of global trade and policy uncertainties.