Current Affairs - Economy

The projected GDP growth rate for India in FY2026-27 is estimated at 6.5%, indicating a slowdown compared to the current fiscal year’s higher growth rate. This moderation is attributed to rising global crude oil prices, geopolitical tensions in West Asia, and supply chain disruptions. These factors contribute to increased inflation, higher production and transportation costs, and reduced consumer spending. Additionally, the widening current account deficit reflects higher import bills, especially for energy resources. Despite these challenges, the Indian economy remains resilient, but external pressures are expected to influence overall economic performance in the coming fiscal year.

3rd is India’s global rank in the renewable energy market in 2025 as per the IRENA Renewable Capacity Statistics 2026 report. This achievement reflects India’s rapid expansion in renewable energy capacity, which reached 250.5 GW. The growth was largely driven by significant additions in solar and wind energy, including 37 GW of solar capacity and a record increase in wind power. India now stands behind only China and the United States in renewable energy capacity, highlighting its strong commitment to sustainable energy development and its growing role in the global transition to clean energy.

Income Tax Department launched the ‘Kar Saathi’ AI-powered assistant along with a new official website to streamline and simplify the tax-filing process. This initiative aims to provide taxpayers with a centralised and user-friendly platform for accessing direct tax-related services and information. The AI chatbot offers round-the-clock assistance, helping users resolve queries efficiently. As part of broader administrative reforms, the move aligns with efforts to modernise tax systems, reduce complexity, and enhance transparency. The initiative also supports the government’s vision of a technology-driven tax framework under the upcoming Income Tax Act, 2025.

William Walsh has been appointed as the new Chief Executive Officer of IndiGo, bringing decades of experience in the global aviation industry. Currently serving as the Director General of the International Air Transport Association (IATA), he is expected to assume office by August 3, 2026, subject to regulatory approvals. His career began as a pilot before advancing into leadership roles, including CEO of British Airways and later heading International Airlines Group (IAG). His expertise in airline management and global operations is expected to support IndiGo’s expansion, strategic growth, and enhancement of customer experience.

Goldman Sachs has revised India’s GDP growth forecast for 2026 to 5.9%, reflecting concerns over rising global oil prices and economic uncertainties. India, being a major importer of crude oil, is highly vulnerable to fluctuations in energy prices, which can increase inflation and widen the trade deficit. Additionally, factors such as the weakening rupee and global supply disruptions contribute to slower economic momentum. Higher inflation may prompt the Reserve Bank of India to increase interest rates, which can reduce consumer demand and investment, further affecting overall economic growth in the short term.