Current Affairs - Economy

The Finance Ministry has forecast a real GDP growth of 6.5% for India in FY24. This is based on the strong performance of the Indian economy in the first quarter of FY24, as well as factors such as improved corporate profitability, private capital formation, and bank credit growth.

JP Morgan Chase & Co. is set to include Indian government bonds in its renowned benchmark emerging-market index from June 28, 2024, with India allotted a maximum 10% weight. This is a significant development, as it is expected to attract substantial foreign investments into India’s debt market. The inclusion of Indian government bonds in JP Morgan’s emerging-market index is a testament to India’s growing economic importance. It is also a positive sign for the Indian government, as it will help to reduce its borrowing costs.

Singapore has surpassed Hong Kong to claim the title of the world's freest economy, according to the 2023 Fraser Institute report. This is a significant shift, as Hong Kong has held the top spot for 53 consecutive years. The Economic Freedom of the World Index, which has been tracking economic freedom since 1970, placed Hong Kong in second place for the first time.

The OECD has increased its GDP growth forecast for India in the fiscal year 2024 to 6.3%, up from the earlier estimate of 6%. This change is due to India's strong economic performance in agriculture, which was supported by favourable weather conditions.

S&P Global Market Intelligence has upgraded India's FY24 growth forecast to 6.6%, as mentioned in the passage, based on strong Q2 performance.