The Reserve Bank of India raised its FY26 GDP growth forecast to 7.3% from 6.8% o n December 6, highlighting improved rural demand and strong private investment. Alongside this, the RBI reduced the repo rate to 5.25%, aiming to support continued economic momentum, particularly in rural areas. The central bank also lowered its CPI inflation outlook to 2%, reflecting falling food prices. With the real GDP for Q2 FY26 growing by 8.2%, the outlook remains positive despite global challenges.