Daily News - Friday, 27 February 2026
Ministry of Statistics and Programme Implementation GDP overhaul could help India surpass Japan’s USD $4.4T economy (Business Standard)
India’s government announced a major GDP data overhaul, shifting the base year from 2011-12 to 2022-23, which could revise the country’s growth estimates upward. According to a Bloomberg survey of 14 economists, India’s GDP for FY2025–26 may now be projected at 7.6%, compared to the earlier 7.4% estimate under the old series. The new methodology gives greater weight to fast‑growing sectors like the digital economy and gig work, while reducing emphasis on agriculture and informal manufacturing, aligning with evolving consumption and production patterns. The Ministry of Statistics and Programme Implementation (MoSPI) also recently revised the inflation series, and Friday’s release will include the first full‑quarter data (Oct-Dec) under the new framework, with economists like Radhika Piplani (Motilal Oswal) expecting growth as high as 8.5%. The overhaul may help India close the gap with Japan’s USD $4.4 trillion (INR ~365 trillion) economy, especially if the rupee stabilizes, and could influence future Reserve Bank of India (RBI) policy decisions. A similar revision in 2015 had boosted India’s GDP by USD $120 billion (INR ~10 trillion) and revised FY2013-14 growth from 4.7% to 6.9%, highlighting the impact of rebasing on macroeconomic narratives.
India-Israel sign 16 MoUs to fast‑track FTA and tech cooperation (Fortune India)
Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu signed 16 Memorandums of Understanding (MoUs) in Jerusalem, marking a strategic push toward finalizing the long‑pending India-Israel Free Trade Agreement (FTA). The MoUs span agricultural innovation, civilian drones, satellite data, irrigation, pest control, greenhouse cultivation, and advanced knowledge transfer, with plans to establish a research and innovation centre for agriculture in India. The Ministry of Commerce and Industry confirmed that the next round of FTA negotiations will be held in May 2026, covering goods and services trade, rules of origin, customs, IPR, and digital trade, under a new Terms of Reference (TOR) signed in November 2025. Bilateral trade in FY2024-25 stood at USD $3.62 billion (INR ~300 billion), with India’s exports to Israel falling 52% to USD $2.14 billion (INR ~177 billion) and imports declining 26.2% to USD $1.48 billion (INR ~122 billion). A new Government‑to‑Government (G2G) mechanism was announced to fast‑track regulatory coordination and approvals, while defence cooperation will expand to include joint development and transfer of critical technologies. Modi emphasized shared values and security priorities, stating, “There is no place for terrorism in the world… We will oppose it shoulder to shoulder,” dedicating the Speaker of the Knesset Medal to the people of India.
The Securities and Exchange Board of India (SEBI) expanded rules for India’s USD $385 billion actively managed equity funds (Bloomberg)
The Securities and Exchange Board of India (SEBI) expanded rules for India’s USD $385 billion (INR ~32 trillion) actively managed equity funds, allowing them to invest more in gold and silver instruments. Under the revised framework, stock funds can now allocate up to 35% of their portfolios to precious metals and units of infrastructure investment trusts (InvITs). This marks a significant shift from earlier restrictions, giving fund managers greater flexibility amid rising global demand for hard assets. The move is expected to diversify risk and attract investors seeking safe‑haven assets, especially as gold prices surged 12% year‑on‑year in 2025. Analysts note that this could channel billions into bullion markets, strengthening India’s position as the world’s second‑largest consumer of gold after China. The decision also aligns with government efforts to deepen capital markets and reduce reliance on traditional equity‑only strategies.
India’s energy demand to surpass U.S. by 2040s, China by 2060s. Solar and wind to supply 59% of India’s electricity by 2050 (livemint)
India’s energy demand is projected to surpass the United States in the 2040s and China in the 2060s, according to a new Shell India report titled India’s energy transition in a security‑focused age. The study notes that solar and wind power, which accounted for just 3% of electricity in 2015, now exceed 20% and are expected to reach 59% of generation by 2050. The Ministry of Power and Ministry of New and Renewable Energy (MNRE) are expected to play central roles in scaling renewables, while natural gas and LNG demand is forecast to rise by 50% or more over the next decade to support industrial growth and grid reliability. India’s energy demand has already grown 40% in the past decade, driven by rapid economic and population expansion, and fossil fuel consumption is expected to peak this decade before gradually declining. The report outlines three scenarios: Archipelagos, Surge, and Horizon, shaped by geopolitics, digitalisation, and climate imperatives, to help policymakers manage uncertainty. Mallika Ishwaran, Chief Economist at Shell, emphasized that meeting India’s accelerating demand will require decisive choices and long‑term vision to balance energy security, competitiveness, and resilience.
