Sanjay Malhotra, the governor of the Reserve Bank of India (RBI), stated that the Indian economy is showing robust real economic activity driven by strong consumption and investment demand. According to the minutes from the latest Monetary Policy Committee meeting, the outlook for 2026-27 is cautiously positive, with a projected 6.9% growth in real GDP. However, challenges from the ongoing conflict in West Asia could impact exports, commodity prices, and remittances. Despite these geopolitical uncertainties, private consumption and investment are expected to remain resilient, supported by improving rural demand and sustained public spending. The RBI also noted that while the retail prices of petrol and diesel have remained stable, the near-term outlook for food prices is favorable. CPI inflation is projected at 4.6%, although risks from global energy prices and potential El Niño conditions could exert upward pressure. Overall, the RBI governor expressed confidence in the Indian economy's ability to withstand external shocks, highlighting its stronger footing compared to previous times.