India’s economic outlook for FY27 remains positive, according to the RBI, although risks from the ongoing West Asia conflict continue to be a concern.
The RBI expects India’s economy to grow by 6.9% in FY27. This is lower than the 7.6% growth recorded in FY26 but remains higher than the IMF’s FY27 forecast of 6.5%.
The central bank said strong domestic demand, rising private consumption, continued investment activity, and healthy corporate and banking sector balance sheets will support economic growth.
Government spending on infrastructure and capital expenditure is expected to remain a major growth driver. The RBI also said trade agreements with key global partners will provide additional support to the economy.
Growth is projected at 6.8% in Q1, 6.7% in Q2, 7.0% in Q3, and 7.2% in Q4 of FY27, indicating stable economic momentum throughout the year.
The RBI warned that a prolonged or wider West Asia conflict could hurt growth by disrupting supply chains, increasing financial market volatility, and pushing up global energy and commodity prices.
Inflation is projected at 4.6% in FY27, remaining within the RBI’s target framework of 4% with a tolerance band of +/- 2%. However, higher oil prices, commodity inflation, exchange-rate volatility, and rising input costs remain upside risks.
The Monetary Policy Committee has kept the repo rate unchanged at 5.25% and retained a neutral policy stance while closely monitoring global developments and inflation risks.
The RBI said India remains one of the fastest-growing major economies. While risks to the outlook are tilted to the downside, strong macroeconomic fundamentals, manufacturing expansion, services sector growth, and continued policy support are expected to sustain economic momentum in FY27.
RBI: Bank Fraud Amount Surges to Rs 48,021 Crore in FY26
India’s banking sector reported frauds worth Rs 48,021 crore in FY26, up 46% from a year ago and the highest level in three years, according to RBI. However, the number of fraud cases fell sharply to 10,114 from 23,722 in FY25.
Public sector banks accounted for Rs 35,709 crore across 5,418 cases, while private banks reported Rs 11,399 crore across 3,956 cases. RBI said Rs 30,199 crore from 314 older cases was reclassified and reported again after a Supreme Court ruling.
Frauds related to bank loans and advances rose 34.3% to Rs 40,774 crore in FY26 from Rs 30,367 crore in FY25, making up nearly 85% of the total fraud amount. The number of such cases increased to 8,640 from 7,924.
Meanwhile, frauds involving cards, internet banking and digital payments dropped sharply. Digital payment fraud cases fell to 293 from 13,332 in FY25, while the amount involved declined to just Rs 29 crore from Rs 517 crore.
RBI to Introduce Varnished Notes as Fake Rs 500 Cases Rise
India saw a sharp rise in fake Rs 500 notes, with counterfeit detections increasing 20% in FY26 after a 37% jump in FY25. The RBI’s annual report showed currency in circulation grew 11.9% to Rs 41.24 lakh crore. To curb counterfeiting, the RBI plans to introduce varnished banknotes with stronger security features and is also testing polymer currency notes.
