Current Affairs - Economy - Discussion

S&P Global Ratings has projected India's GDP growth at 6.6% for FY27, indicating a moderation from the estimated 7.7% growth in FY26. The agency attributed the slower growth outlook to continued energy market disruptions, rising fuel prices, and expectations of a below-normal southwest monsoon influenced by El Niño conditions. These factors could increase inflationary pressures and affect economic activity. S&P also expects inflation to rise in FY27, which may prompt the Reserve Bank of India to consider monetary policy adjustments, including a possible 25-basis-point increase in the repo rate to maintain economic stability and control inflation.