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Domestic Economic activity shows resilience in Q2, says RBI Governor
(07-Oct-2026, 12:01 Hours IST)  
RBI Governor Sanjay Malhotra reported today that domestic economic activity demonstrated fortitude during global economic challenges, as reflected in real GDP growth of 7.8 per cent in Q1:2026-27. Expansion was propelled by robust private consumption and vigorous investment activity, while the contribution of net exports also remained positive. Preliminary high-frequency indicators suggest that economic activity is maintaining momentum in Q2, albeit with some deceleration compared to the prior quarter. Despite an inadequate and erratic southwest monsoon, kharif sowing, although somewhat above its normal level, has been marginally lower than last year. Manufacturing activity, notwithstanding cost burdens, is performing well, as indicated by IIP and PMI. Services sector activity remained stable and widespread, attributable to vigorous domestic and external demand. He observed that while global factors are negatively impacting the domestic growth-inflation trajectory, the inherent resilience and strength of the Indian economy are facilitating navigation through these difficult times. RBI will implement policies that further bolster this resilience. Consequently, we will endeavor to achieve price and financial stability as both are vital for long-term sustainable growth, he asserted.
Friday, October 23, 2026 12:00:00 AM
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