Stronger-than-expected 7.8% YoY GDP growth in Q1 boosts the Indian Rupee despite RBI’s downgraded FY27 outlook.
India’s Q1 GDP expanded 7.8% year-on-year, surpassing the 7.2% estimate and accelerating from the previous quarter. The data reinforced optimism about economic momentum, driving gains in the Indian Rupee against the US Dollar.
The Reserve Bank of India had earlier revised its FY27 growth forecast downward to 6.6% from 6.9%, citing energy supply shocks. Despite this, the Q1 print highlighted resilience, with the INR outperforming major currencies, particularly the Japanese Yen.
Markets reacted positively to the release, though analysts noted the RBI’s cautious stance may limit further upside for the currency.