# RBI Cuts FY27 GDP Growth Forecast To 6.6% Vs 6.9% Earlier.

*business · news · 2026-06-05 · News18*

## Key points

- RBI has cut the FY27 GDP growth forecast from 6.9% to 6.6%.
- Quarterly GDP projections for FY27 have been lowered to between 6.3% and 6.8%.
- The downgrade follows more cautious estimates than the April policy review numbers.
- High global logistics costs and weak external demand are cited as significant export headwinds.
- Government measures aim to offset external shocks, supporting MSMEs, exports, and import substitution.

RBI Cuts FY27 GDP Growth Forecast To 6.6% Vs 6.9% Earlier Published By : , Last Updated:June 05, 2026, 12:17 IST RBI Governor Sanjay Malhotra cuts 2026-27 GDP growth forecast to 6.6 from 6.9, lowers quarterly projections for Q1 to Q4 compared with the April policy review The Reserve Bank of India (RBI) on Friday cut its GDP growth forecast for the current financial year 2026-27 to 6.6 per cent, compared with 6.9 per cent earlier, according to Governor Sanjay Malhotra. The central bank pegged the economic growth for Q1 at 6.6%, Q2 at 6.3%, Q3 at 6.5% and Q4 at 6.8% for the financial year 2026.27. In the April policy revie, the central bank had pegged the economic growth for Q1 at 6.8%, Q2 at 6.7%, Q3 at 7% and Q4 at 7.2% for the financial year 2026.27. Several measures undertaken by the Government, including support to MSME and export sectors, efforts to ramp up domestic gas and crude production, encouraging use of domestically produced alternatives to imported inputs, and diversification of critical imports should help cope up with the external shocks. Malhotra said sustained momentum in services, continuing impact of GST rationalisation, and broadly stable employment conditions should continue to support urban consumption, even though rising inflation could be a drag on the purchasing power of households. While the elevated capacity utilisation and sustained credit flows from bank and non-bank sources are supportive of corporate investment, cost escalation and heightened uncertainty could dampen investor sentiment. “Weak global demand and high logistics costs are headwinds for merchandise exports. Services exports, on the other hand, are expected to sustain their momentum as demand for Indian services remains healthy," RBI governor said in the speech. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism About the Author Mohammad HarisDeputy News Editor (Business) Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis...Read More First Published: June 05, 2026, 10:18 IST News business economy RBI Cuts FY27 GDP Growth Forecast To 6.6% Vs 6.9% Earlier Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments... Read More

**Countries:** India

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