The Governor said, "Growth continues to be supported by resilient domestic demand, sustained expansion in manufacturing and services activity, and robust exports, reaffirming India's position as the world's fastest-growing major economy." The Governor attributed the improved growth outlook to healthy manufacturing activity, buoyant services, strong discretionary consumption, continued government spending on infrastructure, robust credit growth and a rebound in merchandise exports. At the same time, the RBI revised its inflation outlook, projecting consumer price inflation at 5.0 per cent for 2026-27 after inflation in the first quarter turned out to be lower than earlier estimated. The Governor also highlighted continued uncertainty in global trade. Fresh US tariffs, slowing global trade growth and geopolitical tensions are expected to weigh on the external environment.