Economists Cut India's GDP Growth Forecast Due to Oil Price Shock and Geopolitical Tensions
Economists have revised India's GDP growth forecast for the fiscal year 2026/2027 down to 6.6%, a decrease from the previous 7.7% growth rate. This adjustment is attributed to the spike in oil prices and ongoing geopolitical tensions, particularly the re-escalation of conflict in the Middle East. The International Monetary Fund (IMF) has highlighted these factors as significant risks, alongside the potential impact of the El Niño weather phenomenon, which could affect monsoon patterns. The Indian economy has been heavily reliant on government spending, with private investment remaining weak due to the uncertain economic environment.