𝗣𝗠 𝗠𝗼𝗱𝗶 𝗖𝗵𝗮𝗶𝗿𝘀 𝗘𝗔𝗖 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 𝗔𝗺𝗶𝗱 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆

𝗣𝗠 𝗠𝗼𝗱𝗶 𝗖𝗵𝗮𝗶𝗿𝘀 𝗘𝗔𝗖 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 𝗔𝗺𝗶𝗱 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆

Prime Minister Narendra Modi met members of the Economic Advisory Council to the Prime Minister on Saturday. The group discussed ideas to strengthen India's economic growth during ongoing global uncertainty. The meeting covered reforms to improve ease of living and ease of doing business. The council shared its assessment of the Middle East conflict and its impact on India and the world.

The meeting took place one day after the Reserve Bank of India's Monetary Policy Committee kept the policy repo rate unchanged at 5.25%. The committee maintained a neutral stance. The Standing Deposit Facility remains at 5%, while the Marginal Standing Facility and Bank Rate stand at 5.5%.

RBI Governor Sanjay Malhotra said the global economy faces heightened uncertainty, trade route disruptions, supply chain problems, market volatility, and cautious business sentiment. He said India entered this period with stronger fundamentals than in past episodes. He pointed to geopolitical tensions in the Middle East, rising energy prices, and supply chain pressures as key risks.

• The RBI revised its GDP growth forecast for FY2026-27 to 6.6%, down from 6.9%. The central bank expects growth to range between 6.3% and 6.8% across quarters.
• The RBI revised inflation projections upward to 5.1% for FY2026-27, about 50 basis points higher than earlier estimates. The central bank projects core inflation at 4.7%.
• The RBI expanded foreign investor access to government securities under the Fully Accessible Route and eased restrictions for foreign portfolio investors. It raised investment limits for non-resident Indians and overseas citizens of India in listed equities. The bank introduced a concessional foreign exchange swap facility for public sector undertakings raising funds through external commercial borrowings. The RBI proposed restoring the export proceeds realisation period to nine months.
• Malhotra said higher international crude prices have increased input costs across energy, chemicals, metals, and industrial materials. Higher crude oil costs have begun to pass through to domestic fuel prices.
• Malhotra noted inflation had remained relatively contained in recent months, with core inflation stable and fuel prices largely steady earlier in the year.
• Malhotra said risks to inflation and growth remain elevated due to global supply disruptions, weather-related risks, and geopolitical tensions. The central bank will continue monitoring second-round effects before adjusting policy.