Current Affairs - Economy

The Centre revised the customs duty on precious metals on May 13, 2026, to safeguard macroeconomic stability and conserve foreign exchange reserves. Under the revised structure, the import duty on gold and silver was increased significantly from 6% to 15%, while platinum duty was raised to 15.4%. The policy aims to reduce non-essential imports and ease pressure on India’s Current Account Deficit (CAD). The decision was also influenced by global crude oil volatility and supply-side disruptions affecting international trade and shipping. The Ministry of Finance manages such economic and taxation policies to maintain financial stability in the country.

The National Statistics Office (NSO) revised the annual release schedule for the Provisional Estimates of Annual GDP and Fourth Quarter GDP to June 7 each year. Earlier, the data was released on the last working day of May. The revision was made after consultations with the Advisory Committee on National Accounts Statistics (ACNAS). The new schedule allows the inclusion of important corporate financial data and finalised Central Government account figures such as taxes, subsidies, and capital expenditure. The NSO, functioning under the Ministry of Statistics & Programme Implementation, is responsible for compiling national accounts and major macroeconomic indicators in India.

Moody's Investors Service revised India's GDP growth forecast to 6% for both 2026 and 2027 due to rising energy costs and geopolitical tensions affecting the economy. The downgrade reflects concerns over subdued private consumption, weaker industrial activity, and reduced capital formation. India’s dependence on imported energy, especially crude oil and LPG passing through the Strait of Hormuz, increases vulnerability to global disruptions. Higher fuel and fertiliser costs may also strain government finances and reduce capital spending. Moody’s is one of the world’s leading credit rating agencies and closely monitors global economic and financial conditions.

SBI Research projected India’s real GDP growth for the fiscal year 2026-27 (FY27) at 6.6% despite challenges such as global economic uncertainty and fluctuating crude oil prices. The report also highlighted strong credit growth among Scheduled Commercial Banks during FY26, driven largely by increased consumption and GST-related economic activity. However, credit growth is expected to moderate in FY27 due to the high base effect. Additionally, rising crude oil prices remain a concern because they can widen the current account deficit, increase inflation, and reduce overall GDP growth. The forecast reflects India’s resilience amid global economic pressures.

S&P Global revised India’s FY27 GDP growth forecast to 6.6% due to a major energy supply disruption originating in West Asia. The downgrade reflected concerns over rising crude oil prices, increased freight costs, and global economic uncertainty. Earlier projections estimated growth at 7.1%, while the economy had previously expanded by 7.6%. The report also highlighted rising inflation, weakening of the Indian rupee, and widening current account deficits caused by increased import dependence on crude oil and gas. To address the economic challenges, the government introduced stabilisation measures such as a ₹1 lakh crore oil hedging fund and maintenance of strategic petroleum reserves.