CRISIL: India’s GDP to grow at 6.5% in FY26; CAD widen to 1.3%

Current Context: The report is titled "India’s Economic Outlook for FY26" by CRISIL. It was released on February 3, 2025.

• Key Points in the Report:
• India's GDP is projected to grow at 6.5% in FY26, supported by lower inflation and expected rate cuts by the RBI.
• The current account deficit (CAD) is expected to widen from 1.0% of GDP in FY25 to 1.3% in FY26 due to export headwinds from U.S. trade policies.
• Consumer Price Index (CPI) inflation is projected to ease from 4.7% in FY25 to 4.4% in FY26.
• The fiscal deficit is expected to decline from 5.6% of GDP in FY24 to 4.4% in FY26.

Question:

1. According to CRISIL’s report, what is the projected GDP growth rate of India for FY26?

• A) 5.8%
• B) 6.2%
• C) 6.5%
• D) 7.0%

Answer: C) CRISIL projects India’s GDP growth at 6.5% in FY26, driven by lower inflation and expected rate cuts by the Reserve Bank of India (RBI).