The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, marking its first rate hike in nearly four years.
The six-member Monetary Policy Committee unanimously voted for the hike and shifted its stance to calibrated tightening to contain inflation.
RBI Governor Sanjay Malhotra projected real GDP growth at 7.1 percent for the current financial year amid challenging global conditions.