Current Affairs - Economy

The Asian Development Bank (ADB) has raised India’s GDP growth forecast for FY2026-27 to 7%, up from its earlier forecast of 6.6%. The revision reflects stronger-than-expected economic performance, with India recording 7.8% GDP growth in the first quarter of FY2026-27. Robust domestic consumption, investment demand, manufacturing and services activity, and public infrastructure investment are expected to support economic momentum. ADB also highlighted improving logistics infrastructure and regulatory measures as factors supporting private investment. For FY2027-28, ADB has projected India’s GDP growth at 7.1%, compared with its earlier forecast of 7.3%.

S&P Global Ratings has raised India’s FY27 real GDP growth forecast to 7% from its earlier estimate of 6.6%. The revision reflects better-than-expected economic performance during the June quarter, supported by strong industrial activity, healthy consumer spending, goods exports, and increased government investment. S&P also highlighted India’s strong investment momentum compared with other Asia-Pacific economies. However, the agency expects growth to slow in the second half of FY27 as the effects of GST rationalisation and income tax cuts fade. It also expects a 25-basis-point RBI policy rate hike amid inflation, crude oil prices, and weather-related risks.

Fitch Ratings has raised India’s GDP growth forecast for FY27 to 6.9%, from its earlier projection of 6.4%. The upward revision was driven by stronger-than-expected economic activity, including India’s 7.8% GDP growth in the June quarter. Fitch also expects private investment to improve, with investment growth projected to exceed 10%. However, it has cautioned that economic momentum could slow during the remaining part of FY27 due to weaker manufacturing and services growth, below-normal monsoon rainfall, and higher inflation. Other agencies, including S&P Global Ratings and Moody’s, had projected 7% growth for India in FY27.

GIFT City secured the 37th position globally in the Global Financial Centres Index (GFCI 40) on September 17, 2026, improving by nine places from its previous 46th rank. It also secured the 26th position globally in the FinTech category. GIFT City entered the top 15 financial centres in the Asia-Pacific region and was the only Indian financial centre featured in that group. The GFCI 40 assessed 115 financial centres using 144 instrumental factors and 39,531 assessments. GIFT City is located in Gandhinagar, Gujarat, and serves as India’s first International Financial Services Centre (IFSC).

Moody’s has revised India’s real GDP growth forecast for the current fiscal year to 7%, up from its previous estimate of 6%. The upward revision reflects the resilience of the Indian economy despite uncertainties arising from the West Asia conflict. Moody’s expects India to grow faster than other G20 economies and emerging market sovereigns with similar credit ratings. Strong domestic growth, investment, and industrial production have supported the positive outlook. However, the agency has also highlighted risks such as elevated global energy prices, food-price pressures linked to El Niño, higher government expenditure, and potential fiscal pressures.