India Expected to Surpass RBI's Growth Forecast, World Bank Executive Says

Neelkanth Mishra, newly appointed Executive Director for India at the World Bank, told reporters that internal assessments show the Indian economy grew at nearly 8 % in the February‑March quarter. He said the Reserve Bank of India's (RBI) growth forecasts – 6.6 % for FY 2026 and 6.3 % for FY 2027 – are overly conservative and do not reflect the economy's stronger performance. Mishra also defended the RBI’s decision to keep policy rates unchanged, arguing that temporary inflation spikes from high oil prices do not justify a hike unless crude oil prices stay above $130 per barrel. He cautioned that rate hikes aimed at preventing currency‑market panic are costly and often ineffective, and noted that major fiscal adjustments remain premature pending GST and corporate‑tax collections.