Current Affairs - Economy - Discussion

S&P Global Ratings has raised India’s FY27 real GDP growth forecast to 7% from its earlier estimate of 6.6%. The revision reflects better-than-expected economic performance during the June quarter, supported by strong industrial activity, healthy consumer spending, goods exports, and increased government investment. S&P also highlighted India’s strong investment momentum compared with other Asia-Pacific economies. However, the agency expects growth to slow in the second half of FY27 as the effects of GST rationalisation and income tax cuts fade. It also expects a 25-basis-point RBI policy rate hike amid inflation, crude oil prices, and weather-related risks.