I do not read much fiction these days. Last year I read Jhumpa Lahiri's "The Namesake" and liked it very much. Equally impressive is the review of the book by Pankaj Ghosh in the New York Review of Books, December 2003. The same Pankaj Ghosh wrote a wonderful story "Reading Edmund Wilson in Benares". None of these are very recent but I liked all the above.
Swarup