Mumbai, May 29 -- India's economy is expected to remain resilient in 2026-27 despite rising geopolitical tensions and inflationary risks emanating from the West Asia conflict, the Reserve Bank of India (RBI) said in its Annual Report 2025-26.

The central bank projected India's real GDP growth at 6.9 per cent for 2026-27, while warning that inflationary pressures could intensify due to elevated crude oil prices, supply disruptions and global uncertainty.

"Against the backdrop of a moderate global growth, the outlook for the Indian economy in 2026-27 remains positive, supported by strong macroeconomic fundamentals, although a prolonged West Asia conflict may pose downside risk," the RBI said in the report.

The RBI noted that geopolitical...