GDP Growth Forecast: Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced the reduction in repo rate on Friday, December 5. The Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points to 5.25 percent. He also estimated that the GDP growth for the current financial year 2026 will be 7.3 percent. GDP growth has been increased from 6.8 percent to 7.3 percent. The inflation estimate for the third quarter of the financial year 2025-26 has been increased from 6.4 percent to 7 percent and for the fourth quarter from 6.2 percent to 6.5 percent.

RBI Governor gave information

RBI Governor informed that the domestic economic activities of the country are going on at a good pace. Demand in rural areas remains strong, while demand in cities is gradually improving. In the matter of repo rate, the Monetary Policy Committee has unanimously decided to cut interest rates. Under this, a reduction of 25 basis points has been made. Giving further information, Sanjay Malhotra said that before taking the decision of rate cut, MPC studied the changing macro economic situation and future possibilities in detail and on this basis all the members have taken the decision of rate cut.

Mentioned about GST reform and strong consumption

According to the RBI Governor, the country’s second quarter GDP growth accelerated due to strong consumption and reforms in GST. He said that retail inflation has come down to 0.25 percent in October 2025, which is the lowest level till date.

There was no change in the repo rate in the last monetary policy meeting on October 1. The committee had taken the decision to keep the repo rate stable at 5.5 percent.

How much did the repo rate decrease this year?

RBI had reduced the repo rate by a total of 100 basis points between February and June this year. That means interest rates were reduced from 6.5 percent to 5.5 percent. After this, no changes were made in the policy meetings of August and October and it was decided to keep the repo rate stable.

Also read:

Gold Price Today: Is gold expensive or cheap today? Know how much you will have to spend to buy gold on December 5

RBI MPC Meeting 2025: The review meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) is starting today i.e. Wednesday, December 3. This meeting will continue till December 5. These meetings are being held under the chairmanship of RBI Governor Sanjay Malhotra.

In which decision regarding repo rate will be taken. The results will be announced by the committee on December 5. According to a report published in Hindustan News, the report of SBI Research has expressed hope that this time there does not seem to be any situation regarding rate cut…..

SBI Research Report

According to a report by SBI Research, till a few days ago it was being estimated that RBI may make a slight cut in the repo rate by 25 basis points. But looking at the current situation, this hope is no longer visible.

According to the report, GDP growth has been strong in the July-September quarter and considering the current economic situation, there is no hope of any change in the repo rate. Besides, it was also informed in this report that many economies of the world are keeping their repo rates in a stable state. That means it is not making any change in the repo rate.

Repo rate may be cut

According to the report of credit rating company CareEdge, the country’s inflation has reached a ten-year low of 0.3 percent in the month of October, which is much less than the set target of 4 percent. In such a situation, it can be expected that there will be a reduction in interest rates.

The report said that in view of the decline in inflation and strong GDP growth, a 0.25 percent repo cut can be announced by the RBI.

Also read: Stock Market Today: After a flat start, the stock market boomed! Sensex falls 160 points, Nifty below 25,958

Repo Rate Cut Expectation: The Reserve Bank of India (RBI) is likely to cut the repo rate in the Monetary Policy Committee meeting to be held in the month of December. On Thursday, economists informed that the inflation rate has decreased in the month of October. Retail inflation has reached a record low of 0.25 percent in October, which was 1.44 percent in the month of September.

According to experts, this is the lowest inflation rate recorded in the Consumer Price Index (CPI) series. Overall, inflation has come down because, on one hand, the prices of food items have come down and on the other hand, the prices of other essential goods are also increasing at a slow pace.

What information did CRISIL give?

According to the information given by CRISIL, due to lower than expected food inflation rate, low global crude oil prices and GST reform, retail inflation rate may average 2.5 percent in this financial year. Which is much less than last year’s figure of 4.6 percent. Also, the benefits of GST reform are reaching the common people. However, the effect of GST was not completely transferred in the month of October. The effect of which will be seen in the month of November.

Also giving further information, Crisil said that the retail inflation rate in the month of November is 0.9 percent, it is likely to decline further due to GST changes. Also, the core inflation rate may remain less than 2 percent in the financial year 2026.

There was no change in repo rate in October

The Monetary Policy Committee (MPC) headed by RBI Governor Sanjay Malhotra had decided in October not to make any change in the repo rate. It was decided to keep the repo rate at 5.5 percent. Earlier, even in the month of August, there was no change in the repo rate. The impact of the heavy tariffs imposed by America was visible in the committee’s decision.

Also read: This defense stock rose amid the decline, is it the right opportunity to buy now? Brokerage firm gave update

IMF on India’s GDP: At a time when the world’s economic growth is slowing down, India’s GDP is growing strongly. This has been approved by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). He said that at a time when many big economies of the world are facing challenges, India is playing an important role in global economic development.

During the annual meeting of IMF and World Bank held in Washington, Georgieva said that India’s strong economic policies and reformative steps have made it one of the fastest growing economies of the world.

The world recognized India’s iron power

Georgieva said that before the Corona epidemic, the global economy was expected to grow at the rate of 3.7 percent, but now it is limited to about 3 percent. He said that the last few years have seen a huge change in the global economic pace – while China’s economy slowed down, India’s has accelerated its pace. He further said that India has proved the doubters wrong on the basis of strong reforms and consistent policy efforts.

What does the latest estimate of IMF say?

According to the latest IMF estimates, India will remain the world’s fastest growing economy in the coming years. The organization says that India’s GDP can grow at the rate of 6.4 percent in the financial years 2025 and 2026.

IMF has increased India’s growth rate forecast. Earlier in the report released in April 2025, India’s growth rate was said to be 6.2 percent in 2025 and 6.3 percent in 2026 respectively. In comparison, China’s economy is projected to grow by 4.8 percent in 2025 and 4.2 percent in 2026.

Also read: Why is India increasing its gold reserves so aggressively, China also increased its imports tremendously?

Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.

Stock Market News: The day of 30 September 2025 for the Indian stock market was full of ups and downs. After showing strength in early trade, the market went in the red mark by noon. At the end of the trading, the Sensex closed down to 97.32 points (0.12%), while the Nifty remained 23.80 points (0.10%) below.

Sensex Top Gainer: Ultracemco, Adani Ports, Tata Motors, BEL, Bajaj Finance
Sensex Top Loser: ITC, Bharti Airtel, Trent, Titan

4 major reasons for market collapse

1. Selling of foreign investors

So far in September, Foreign Investors (FIIs) have withdrawn Rs 32,900 crore from the Indian stock market. Constant selling and lack of any major positive trigger put pressure on the market. According to Ajit Mishra of Religare Broking, the Nifty is getting strong support at 24,400-24,500 levels, but FII selling and RBI’s policy before the policy is stopping the speed of the market.

2. RBI’s monetary policy awaits

The meeting of RBI’s Monetary Policy Committee (MPC) is going on from September 29 and the verdict will come on 1 October. Investors are cautious and avoiding new investment. Experts believe that RBI will not change the repo rates at the moment.

3. India Vix boom

India VIX (volatility index) rose 3% to 11.73, which increased the atmosphere of market volatility and uncertainty. This was the reason that the trust of investors weakened.

4. Tariff and H-1B visa dispute

There are no positive signs on tariff talks with America and the H-1B visa issue is also stuck. It has directly affected stocks like IT sector and especially TCS. The company’s shares are continuously falling down. Overall, foreign investors’ selling, waiting for RBI policy, increased instability and business disputes related to the US weakened the Indian stock market.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

Also read: Central employees bat, government made a big announcement, 30 days bonus before Dussehra

Relief can be given to people paying EMI from RBI. Taking policy decisions from RBI in the monetary review meeting from April 7 to 9, the interest rate can be cut by up to 0.25 percent. At present, the central bank has scope to cut interest rate due to reduction in inflation.

However, the tariff imposed by the US has definitely created a challenge in front of maintaining the pace of the economy. In this situation, encouragement is needed to maintain an economy speed on the domestic front.

Relief expected

Earlier, in February 2025, RBI had cut the repo rate by 0.25 per cent. The repo rate was reduced from 6.5 percent to 6.25 percent. This happened for the first time after about 5 years. In such a situation, it is now expected that this time also the RBI can cut 0.25 percent further. Taking a loan can be cheaper.

If you explain in easy language, you can get some relief in EMI. According to the report of Financial Express, institutions like Bank of Baroda say that a total reduction of 0.75 percent can be seen in the whole year.

If you understand in easy language, the repo rate is the rate on which RBI gives loan to banks. When this rate decreases, banks also start giving loans to people at cheap rates, which reduces EMI and increases the expenditure in the market.

RBI’s target of inflation control is between 2 percent to 6 percent and India remains in this band. This means that now RBI’s focus will be on boosting growth. This can be news of small business, startups and the general public.

Tariff raised challenge

US President Donald Trump has announced a heavy tariff on 60 countries, including India and China. These tariffs will be from 11 percent to 49 percent and will be implemented from April 9. At the same time, RBI will announce its policy on the same day. Now it can become a chance for India. If countries like China, Vietnam, Bangladesh become expensive in the American market, then there can be a place for Indian exporters. That is, our exporters can get a new Window of Opportunity.

Actually, in such a situation, the question is how RBI will balance. That is, the needs of domestic development on one side, the changing atmosphere of global trade on the other side. Now in such a situation, the question is big whether the rate will be cut again?

Also read: Stock Market Crash: Sensex declines drastically, 19 lakh crore Swaha, Reliance-TCS shared

Monday was very disappointing for the Indian stock market once again. Within five minutes, investors suffered a huge loss of about 19 lakh crore rupees. The Nifty slipped down about 1000 points. This was the biggest decline in the last 10 months in the Nifty. Shares from Reliance to TCS were seen rolling. In such a situation, the question is arising that after the announcement of the tariff, why is there such chaos in the stock market from America to China, South Korea to India? Let us know in detail in five points.

1-Economic crisis fear

Ever since the tariff has been announced by the Trump administration and more than 180 countries around the world have been brought under its purview, since then there is a possibility of increasing inflation, decrease in profits of companies and weak sentiments of the consumer. If the experts are to be believed, it can not only have a widespread impact on the global economic pace, but if this policy remains for a long time, then the global recession is sure to come. If the global recession comes, then India will also not be untouched by that effect, even if its effect is less.

Results of 2-RBI MPC meeting

The monetary policy of the Reserve Bank is being held from April 7 to 9, results will come on 9th. However, it is expected that this time there may be a cut of 25 basis points from RBI. If this happens, there will be a positive sign for the market. Along with this, the figures of retail inflation and industrial production will be released on 11 April. This will also help in understanding the state of the Indian economy to a large extent.

3-hurry storm

US President Donald Trump, after the announcement of the tariff, reacted to the fall in the stock markets continuously, saying that sometimes bitter medicine has to be given to cure something. President Trump also made it clear that there is no concern in this. Whereas, on the other hand, the Asian stock markets have seen a drastic decline on Monday, where there was a decline of 225 points as soon as the market was opened in Nikkei, Japan.

Whereas, Australia’s S&P 200 declined by 6.5 percent at seven 7184.70, South Korea’s Koppy fell by 5.5 percent to 2328.52. Earlier, the market closed on Friday in the US Nasdaq at a decline of nearly 7 per cent. However, experts believe that this decline is nothing, if the situation does not recover, then the condition of the American market can be like this in 1987.

Also read: Stock Market Crash: Sensex declines drastically, 19 lakh crore Swaha, Reliance-TCS shared

RBI Monetary Policy Mending: The first major economic movement of FY 2025-26 is about to begin. The Reserve Bank of India (RBI) is going to start its three -day Monetary Policy Committee (MPC) meeting from Monday, 7 April. And its final decision will come to the fore at 10 am on Wednesday, April 9. Now you must be wondering what is special for the common man in this? Let us understand in easy language that what is going to come out of this meeting for you.

Will your loans be cheap?

In February 2025, the RBI took a major step, the repo rate was reduced by 0.25 per cent, ie the repo rate was reduced from 6.5 per cent to 6.25 per cent. This happened for the first time after about five years. In such a situation, it is now expected that this time also the RBI can cut 0.25 percent further. That is, taking a loan can be cheaper. If you explain in easy language, you can get some relief in EMI. According to the report of Financial Express, institutions like Bank of Baroda say that a total reduction of 0.75 percent can be seen in the whole year.

What is a repo rate?

If you understand in easy language, the repo rate is the rate on which RBI gives loan to banks. When this rate decreases, banks also start giving loans to people at cheap rates, which reduces EMI and increases the expenditure in the market.

Inflation is under control, now turn of growth

RBI’s target of inflation control is between 2 percent to 6 percent and India remains in this band. This means that now RBI’s focus will be on boosting growth. This can be news of small business, startups and the general public.

How to benefit India in world developments?

In fact, US President Donald Trump has announced to impose heavy tariffs on 60 countries, including India and China. These tariffs will be from 11 percent to 49 percent and will be implemented from April 9. At the same time, RBI will announce its policy on the same day.

Now it can become a chance for India. If countries like China, Vietnam, Bangladesh become expensive in the American market, then there can be a place for Indian exporters. That is, our exporters can get a new Window of Opportunity.

So what to see now?

Actually, in such a situation, the question is how RBI will balance. That is, the needs of domestic development on one side, the changing atmosphere of global trade on the other side. Now in such a situation, the question is big whether the rate will be cut again? Will home loans be cheap and will there be relief in the EMI of auto loan. Apart from this, the question is whether the MSME sector will get boost in the new financial year from RBI? The answer to all these questions will be found on April 9 at 10 am.

Also read: 8th Pay Commission Fitment Factor: Fitment Factor may increase in 8th Pay Commission! Modi government can take a big decision due to DA