Economists Cut India’s GDP Growth Forecast on Oil Price Shock

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Economists have lowered India's GDP growth forecast to 6.6% for the fiscal year ending March 2027 due to an oil price shock and weakening private investments. The forecast reflects a 1 percentage point decline from the previous year's 7.7% growth amidst Middle East crisis impacts.

The spike in oil prices and slowing private investments have been weighing on India’s economic growth, which is now seen at 6.6% in the fiscal year to March 2027, a full percentage-point drop from the 7.7% GDP growth in the prior fiscal year, a Reuters poll of economists showed on Tuesday. Nearly three dozen economists were surveyed between July 21 and 27 for the poll, in which some experts flagged weaker real economic activity than the headline figures have suggested in the past five months since the Middle East crisis erupted. The Indian…