Mumbai, Dec. 5 -- The Indian economy is projected to grow at 7.3 per cent in the current fiscal 2025-26, about a half percentage point higher than previously estimated, RBI Governor Sanjay Malhotra said Friday, announcing the decisions of Monetary Policy Committee.

For Q3 and Q4 2025-26, he projected growth at 7 per cent and 6.5 per cent, respectively. For Q1 and Q2 2026-27, the GDP numbers are projected at 6.7 per cent and 6.8, respectively.

The governor said the domestic economy activity is holding up; with rural demand robust aand urban demand recovering steadily.

On the policy rate front, the MPC announced a 25 basis points reduction in the policy repo rate, bringing it down to 5.25 per cent, in a unanimous decision.

The decision ...