India's economic growth to slow to 6.8% FY27 as West Asia crisis, El Nino impact

Earlier this month, the Reserve Bank of India (RBI) had raised growth projections from 6.6% to 6.7% citing resilient domestic economy.

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01India's economic growth is projected to slow down to 6.8% in FY27.
02The Reserve Bank of India (RBI) had raised growth projections from 6.6% to 6.7% earlier this month.
03India Ratings and Research has raised its FY27 GDP growth forecast to 6.8% from 6.7%.
04GDP growth is projected to slow down to 6.8% in FY27 due to inflation and external crises.
05India's GDP growth is expected to slow down from 7.6% in FY26 to 6.8% in FY27.
06West Asia crisis and El Nino risks are cited as reasons for the slowdown in GDP growth.
07The RBI had cited a resilient domestic economy as the reason for the revised growth projection.
08India Ratings and Research expects growth to slow down due to inflation, rupee weakness, and El Nino risks.

Trap alerts

Most people think the slowdown in GDP growth is due to internal factors, but actually it's due to external crises like the West Asia conflict.
Most people think the RBI's revised growth projection is a pessimistic forecast, but actually it's based on a resilient domestic economy.
Most people think the slowdown in GDP growth will have a significant impact on employment, but actually the impact is expected to be moderate.

Current-affairs link

The RBI had cited a resilient domestic economy as the reason for the revised growth projection, which is in line with the government's efforts to boost economic growth through various initiatives such as the Make in India program and the Digital India initiative.

Mains Practice Question

Discuss the impact of external factors on India's economic growth, with specific reference to the West Asia crisis and El Nino impact.

250 words

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Prelims Practice MCQs

Single facteasy

Which percentage is India's economic growth expected to slow to in FY27?

A.6.5%
B.6.6%
C.6.7%
D.6.8%

India's economic growth is expected to slow to 6.8% in FY27, as per the latest projections.

Single factmedium

The Reserve Bank of India (RBI) cited which factor as a reason for the growth projection increase?

A.The West Asia crisis
B.The El Nino impact
C.A resilient domestic economy
D.A decline in global oil prices

The RBI had earlier cited a resilient domestic economy as a reason for the growth projection increase.

Statement I & IIhard

Consider the following two statements: Statement-I: India's economic growth is expected to slow to 6.8% in FY27. Statement-II: The slowdown in economic growth is due to external factors such as the West Asia crisis and El Nino impact. Which one of the following is correct in respect of the above statements?

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