Current Affairs - Economy

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.

The Cabinet Committee on Economic Affairs (CCEA) approved the Fair and Remunerative Price (FRP) for sugarcane at Rs. 365 per quintal for the Sugar Season 2026-27. This rate is applicable for a basic recovery rate of 10.25% and will come into effect from October 1, 2026. Farmers are eligible for additional premiums if the sugar recovery rate exceeds the benchmark, while deductions apply for lower recovery rates. The decision benefits nearly 5 crore sugarcane farmers and lakhs of workers employed in sugar mills and related industries. The FRP system ensures fair compensation to farmers while maintaining stability in the sugar sector.