India's Central Bank Warns Oil Shock Threatens Growth
AI Summary
India's central bank warns that rising oil prices due to global supply disruptions could slow economic growth and increase inflation risks, despite resilient macroeconomic fundamentals. The outlook for 2026-27 is generally positive but may be challenged by ongoing conflicts in West Asia.
India's economy remains resilient to the external shocks, but the oil price surge amid the global supply disruption poses near-term downside risks to economic growth and upside risks to inflation, the Reserve Bank of India (RBI) said in its Annual Report for 2025-26 published on Friday. "Against the backdrop of a moderate global growth, the outlook for the Indian economy in 2026-27 remains positive, supported by strong macroeconomic fundamentals, although a prolonged West Asia conflict may pose downside risk," economists at India's central bank…