JAMMU, Oct 8: India’s economic growth momentum remains resilient despite ongoing global headwinds, supported by robust domestic fundamentals and a strong economic outlook, according to analysis from HDFC Bank following the Reserve Bank of India’s (RBI) latest monetary policy announcement.Commenting on the policy measures, Sakshi Gupta, Principal Economist at HDFC Bank, emphasized the positive momentum in the domestic economy. Reflecting this strength, macroeconomic projections for FY27 have been revised upward, with economic growth expectations raised by 40 basis points to 7.1%.”Growth momentum remains resilient,” said Sakshi Gupta, Principal Economist at HDFC Bank. “The RBI’s revised macro forecast reflects this strength, with the full-year growth forecast revised up by 40 basis points to 7.1%.””We expect cumulative rate hikes by the central bank to the tune of another 50-75bps over the next few months. The risk of a more aggressive rate hike cycle hinges on whether the current West Asia conflict and rise in oil prices continue to linger on for longer. We expect inflation to average at 5.4% in FY27 with 6.3% expected in the current quarter. On growth, we hold on to our expectations of 7.1% growth in FY27,” she added.While global commodity price movements and West Asia conflict risks remain key factors to monitor, HDFC Bank maintains a positive outlook on the country’s broader economic performance.
“On growth, we hold on to our expectations of 7.1% growth in FY27,” Gupta said, noting that inflation is expected to average 5.4% across FY27 as seasonal pressures normalize.Addressing liquidity and financial market conditions, Gupta noted that the central bank’s measured approach reflects confidence in natural market drivers, particularly with seasonal demand picking up.”On liquidity, the RBI abstained from announcing any new measures, and we expect the central bank to continue with routine market operations to balance excess surplus,” Gupta explained. “Moreover, as we move into the festive season, higher currency in circulation is also likely to support healthy liquidity balances.”Looking ahead, financial markets are expected to remain well-calibrated as liquidity normalizes and economic expansion continues on a stable trajectory.