The Indian government has ensured inflation is on a declining path and the central bank expects it to fall below 4% next year, Chief Economic Adviser V. Anantha Nageswaran said on Wednesday.
Speaking at an event to mark National Pension System (NPS) Diwas, Nageswaran said the Reserve Bank of India has upgraded the country’s growth forecast for the current year.
“Even as the external environment becomes more challenging, the government’s endeavour is to maintain growth momentum,” he said.
His comments came after the Reserve Bank of India’s Monetary Policy Committee revised its inflation forecast for FY26 to 2.6% after its meeting concluded earlier today, citing easing food prices and GST rationalisation.
The RBI lowered its outlook for the first quarter of FY27 to 4.5% from 4.9%, but inflation is still expected to remain slightly above the 4% target. For FY26, the central bank cut projections to 1.8% for the first quarter, 3.1% for the third, and 4% for the fourth, reflecting a more benign inflation outlook.
Retail inflation has stayed below 4% since February and dropped to a six-year low of 2.07% in August. The RBI has already reduced the repo rate by 25 basis points in February and April, and by 50 basis points in June, as price pressures eased.
Also Read: RBI MPC revises headline inflation forecast for FY26 to 2.6%
