Tuesday, January 27, 2026

Business

India's economy poised for steady growth, repo rate likely unchanged till 2027

IANS | January 27, 2026 01:35 PM

NEW DELHI: India’s GDP growth is forecasted at 6.5 per cent in 2026 and 6.4 per cent in 2027, keeping it among the fastest‑growing major economies, a report said on Tuesday.

The report from DBS Bank said that CPI inflation is expected to rise from 2.2 per cent in 2025 to 3.5 per cent in 2026 and 4.5 per cent in 2027, indicating gradual price normalisation.

It stated that the Reserve Bank of India is expected to keep policy rate steady at 5.25 per cent through 2026 and 2027, signalling a stable monetary stance.

"India’s 10‑year government bond yield is projected to ease from 6.60 per cent in early 2026 to 6.40 per cent by end‑2027 despite global rate volatility, " the report said.

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