Current Affairs - Economy

Fitch Ratings has upgraded India’s GDP growth forecast for FY26 to 7.4%, reflecting strong consumer demand, rising confidence, and the positive impact of GST reforms. This revision follows India’s impressive 8.2% growth in the second quarter of FY26, which marked the fastest expansion in six quarters. The updated forecast indicates a more robust economic outlook driven primarily by private consumption. Fitch also noted a narrowing gap between nominal and real GDP due to stable inflation levels, making the growth more sustainable. While momentum may moderate later due to base effects, the 7.4% projection underscores India’s strong economic fundamentals.

IFFCO-TOKIO General Insurance Company is a long-standing joint venture created in 2000, where the Indian Farmers Fertilizer Cooperative (IFFCO) holds a majority stake of 51%, partnered with Japan’s Tokio Marine Group, which owns the remaining 49%. The organization has focused on making insurance affordable and accessible since its inception. On its 25th anniversary, it expanded this mission by collaborating with cooperatives to distribute micro insurance products to underserved communities. This approach supports IRDAI’s ‘Insurance for All by 2047’ goal by improving insurance penetration in rural and semi-urban regions, leveraging cooperative networks to increase awareness, coverage, and financial protection for low-income groups.

The FDI inflow during the first half of FY 2025-26 reached $50.36 billion, marking a 16% increase over the $43.37 billion received in the same period the previous year. This growth represents the highest-ever FDI recorded for the first half of any fiscal year in India. Alongside this rise, the government also pointed to stronger repatriation patterns, an increase in outward direct investment, and the expansion of India’s network of free trade and preferential trade agreements. Major pacts such as the EFTA agreement, which promises large investment commitments and job creation, further reflect the country’s expanding global economic engagement.

The figure 8.5% represents the year-on-year growth in Aadhaar authentications during November 2025, marking the highest monthly authentication volume of the fiscal year at 231 crore. This growth reflects the increasing reliance on Aadhaar-based digital infrastructure across various sectors. A major factor in this surge was the rapid adoption of face authentication, which accounted for nearly 60% of pensioners’ Digital Life Certificates, demonstrating how technology is aiding service delivery. Additionally, the rise in e-KYC usage to 47.19 crore transactions underlines Aadhaar’s expanding role in banking and financial services, further contributing to the overall growth momentum.

India’s economy recorded a robust GDP growth of 8.2% in the second quarter of FY26, driven primarily by strong performance in the manufacturing, construction, and services sectors. Manufacturing grew by 9.1%, construction by 7.2%, and services by 9.2%, reflecting broad-based recovery. The increase in Private Final Consumption Expenditure (PFCE) by 7.9% also contributed to the overall growth, signaling improving consumer demand. This marks a significant rise from 5.6% in Q2 FY25, indicating accelerated economic activity. The real GDP in Q2 FY26 stood at ₹48.63 lakh crore, demonstrating the economy’s resilience and strength across sectors.