ECONOMY & INFRASTRUCTURE
GDP / Inflation
Moody's Downgrades India's 2026 GDP Growth Projection to 6.0%
In its Global Macro Outlook May update, Moody's Ratings reduced India's GDP growth forecast for the year 2026 by 0.8 percentage points to 6.0%.
The rating agency also adjusted its growth projections for the calendar year 2027, lowering it by 0.5 percentage points to 6.0%.
The revision reflects evolving global economic conditions and potential domestic headwinds influencing India's macroeconomic trajectory.
For aspirants, tracking revisions by global agencies like Moody's is vital for understanding external perceptions of the Indian economy.
The rating agency also adjusted its growth projections for the calendar year 2027, lowering it by 0.5 percentage points to 6.0%.
The revision reflects evolving global economic conditions and potential domestic headwinds influencing India's macroeconomic trajectory.
For aspirants, tracking revisions by global agencies like Moody's is vital for understanding external perceptions of the Indian economy.
Key Facts / Static GK
Moody's Headquarters: New York, USA
Founded: 1909
Founded: 1909
Practice Quiz — 14 May 2026
Q1. What is the primary objective of the 'GARUDA' framework proposed by SEBI?
Answer: (C) To fast-track the approval and launch process of AIF schemes — The GARUDA (Green-Channel AIF Rollout Upon Document Acknowledgement) framework is a fast-track approval mechanism intended to reduce regulatory delays and allow AIFs to launch within 10 working days instead of the current 30 days.
Q2. The RBI cancelled the license of Sarvodaya Co-operative Bank under which sections of the Banking Regulation Act, 1949?
Answer: (B) Sections 22(4) and 56 — The RBI cancelled the bank's license specifically under Sections 22(4) and 56 of the Banking Regulation Act, 1949, which deal with the licensing of banking companies and their application to co-operative societies.
Q3. Which of the following statements is true regarding the newly notified VB-G RAM G Act, 2025?
Answer: (C) It replaces the MGNREGA Act, 2005 and increases guaranteed work to 125 days. — The VB-G RAM G Act replaces MGNREGA and enhances the employment guarantee from 100 to 125 days annually.
Q4. How will the Bharat Maritime Insurance Pool (BMIP) settle claims exceeding USD 100 million?
Answer: (B) By utilizing the sovereign guarantee provided by the government — For claims up to USD 100 million, the pool uses its own resources. Claims exceeding this amount are supported by the sovereign guarantee after pool reserves and reinsurance are exhausted.
Q5. According to the Moody's May 2026 update, what is the revised GDP growth forecast for India for CY2027?
Answer: (D) 6.0% — Moody's reduced India's growth projection for CY2027 by 50 basis points to 6.0% (down from the previous forecast of 6.5%).
Keep Learning with PrepZen
Get daily current affairs, live mock tests, mistake bank, vocab builder & more — all free on your phone.