Current Affairs - Economy

The RBI’s 101st Survey of Professional Forecasters, conducted in July 2026, projected India’s real GDP growth for FY27 at 6.6%. This was an upward revision from the earlier estimate of 6.5%, reflecting expectations of continued support from domestic demand, manufacturing, services, and exports. The survey also projected FY27 retail inflation at 5%, merchandise export growth at 7%, and a current account deficit of 1.4% of GDP. The RBI itself later raised its FY27 GDP growth forecast to 6.7%, which was 0.1 percentage point higher than the SPF estimate.

GoodWorks Group signed a Memorandum of Understanding (MoU) with the Karnataka Digital Economy Mission (KDEM) on August 09, 2026, to attract ₹5,000 crore in Global Capability Centre (GCC) investments to Karnataka over the next five years. The partnership aims to establish 50 new GCCs and expand existing centres, creating more than 62,500 direct and indirect jobs. It is also expected to generate an annual salary inflow of around ₹2,250 crore and increase demand for 1.25 million sq. ft of commercial real estate. Target markets include North America, Europe, Japan, South Korea, and West Asia.

Andhra Pradesh announced a development plan on August 6, 2026, to attract ₹9.3 lakh crore in total investment through the Visakhapatnam Economic Region (VER) project. The state government is expected to contribute ₹3.5 lakh crore to ₹4 lakh crore, while the private sector target is ₹5.3 lakh crore. The ‘Bay City’ project will serve as the primary anchor for regional development. The project extends from Mulapeta Port to the Akhanda Godavari project in Rajahmundry and focuses on AI data centres, hydrogen, clean technology, renewable energy, port-related industries and tourism. The initiative aims to accelerate economic growth across the region.

Air India entered into a codeshare partnership with Azerbaijan Airlines on August 6, 2026, to improve connectivity and promote tourism between India and Azerbaijan. Under the agreement, Air India can place its ‘AI’ designator code on flights operated by Azerbaijan Airlines. The partnership includes daily flights between Delhi and Baku and between Mumbai and Baku. It allows Air India customers to travel to Baku on a single ticket and itinerary, including destinations not directly served by Air India. Air India was founded in 1932 as Tata Airlines and is headquartered in New Delhi.

SBI Research projected India’s GDP growth at approximately 7% for Q1 FY27 in its Pre-Monetary Policy Committee (MPC) report released on August 1, 2026. This estimate is higher than the RBI’s earlier downgraded projection of 6.6%. Several economic indicators supported the optimistic outlook, including 7.3% growth in the Index of Industrial Production (IIP), 19.2% expansion in industrial activity and credit, and a 24.1% year-on-year increase in domestic passenger vehicle sales in June. Electricity demand and exports also recorded strong growth. SBI Research expects the economy to maintain momentum despite global uncertainties and geopolitical challenges.