<h1>Economic growth potential affirmed; income tax relief seen as growth supportive without fuelling inflation.</h1> RBI projects 6.7 percent growth for 2025-26 while the Governor asserted India can surpass seven percent growth; income tax relief in the Budget is characterised as growth supportive rather than inflationary, and agricultural focus is expected to ease food inflation. The RBI forecasts retail inflation at 4.2 percent for the next year, emphasises a non targeted exchange rate policy focused on long term dynamics, and records recent rupee depreciation alongside a decline in foreign exchange reserves partly due to market intervention.