The Reserve Bank of India on Wednesday revised its growth projection for the current financial year, lowering it to 6.5% from the earlier estimate of 6.7%. The adjustment comes in response to rising global trade challenges and policy-related uncertainties.

Despite the revised forecast, RBI Governor Sanjay Malhotra expressed optimism about the agricultural sector. He noted that strong reservoir levels and robust crop output are expected to support positive momentum in agriculture for 2025–26.

On the broader economic front, Governor Malhotra highlighted encouraging signs in manufacturing, with improving activity and strong business confidence. He also noted that the services sector continues to demonstrate resilience. The remarks were made during the announcement of the first bi-monthly Monetary Policy Committee (MPC) meeting for the current fiscal year.