<p> New Delhi: S&P Global on Wednesday lowered India’s economic growth projection for the current financial year to 6.6%, from its earlier 7.1%, citing disruption in trade and energy flows and higher inflation due to the West Asia conflict.</p>.<p>“The Middle East war represents the biggest test of India’s resilience in recent years, with the largest energy shock on record triggering spillovers into freight and insurance costs, supply chains and fertilisers,” S&P Global said in its latest ‘India Forward’ report, jointly done with Crisil.</p>.<p>Crisil Chief Economist Dharmakirti Joshi said disruption in energy supplies is likely to push India’s retail inflation to 5.1% in 2026-27, from around 2% the previous year. “Food and fuel will be key drivers,” he said.</p>.India to clock 6.3% growth even if crude price averages $130/barrel in FY27: S&P.<p>Joshi said Wholesale Price Index-based (WPI) inflation is likely to surpass Consumer Price Index-based (CPI) retail inflation in the coming months, indicating higher impact of price rise in businesses. Despite a sharp jump in crude prices since the beginning of the Iran war on February 28, retail prices of petrol and diesel remain largely unchanged. Joshi said it would be reflected in the inflation numbers in April and subsequent months.</p>.<p>India’s annual GDP growth averaged 7.3% between FY23 and FY26. For the financial year ended March 2026, the GDP growth has been pegged at 7.6%. The growth is estimated to moderate sharply in the current fiscal.</p>.<p>The ‘India Forward’ report’s projection of 6.6% GDP growth for the current fiscal year is Crisil’s estimate. The report noted that the sustained nature of the West Asia conflict is changing India’s risk management focus from immediate buffers to a focus on medium to long-term strategies. India’s post-Covid fiscal consolidation — reducing the fiscal deficit from 9.2% of GDP in 2020-21, to 4.4% in 2025-26 — now faces its toughest challenge, it said.</p>.<p>Deepa Kumar, Head of Asia-Pacific Country Risk, S&P Global Market Intelligence, said the conflict has put a spotlight on energy and food security reforms.</p>
<p> New Delhi: S&P Global on Wednesday lowered India’s economic growth projection for the current financial year to 6.6%, from its earlier 7.1%, citing disruption in trade and energy flows and higher inflation due to the West Asia conflict.</p>.<p>“The Middle East war represents the biggest test of India’s resilience in recent years, with the largest energy shock on record triggering spillovers into freight and insurance costs, supply chains and fertilisers,” S&P Global said in its latest ‘India Forward’ report, jointly done with Crisil.</p>.<p>Crisil Chief Economist Dharmakirti Joshi said disruption in energy supplies is likely to push India’s retail inflation to 5.1% in 2026-27, from around 2% the previous year. “Food and fuel will be key drivers,” he said.</p>.India to clock 6.3% growth even if crude price averages $130/barrel in FY27: S&P.<p>Joshi said Wholesale Price Index-based (WPI) inflation is likely to surpass Consumer Price Index-based (CPI) retail inflation in the coming months, indicating higher impact of price rise in businesses. Despite a sharp jump in crude prices since the beginning of the Iran war on February 28, retail prices of petrol and diesel remain largely unchanged. Joshi said it would be reflected in the inflation numbers in April and subsequent months.</p>.<p>India’s annual GDP growth averaged 7.3% between FY23 and FY26. For the financial year ended March 2026, the GDP growth has been pegged at 7.6%. The growth is estimated to moderate sharply in the current fiscal.</p>.<p>The ‘India Forward’ report’s projection of 6.6% GDP growth for the current fiscal year is Crisil’s estimate. The report noted that the sustained nature of the West Asia conflict is changing India’s risk management focus from immediate buffers to a focus on medium to long-term strategies. India’s post-Covid fiscal consolidation — reducing the fiscal deficit from 9.2% of GDP in 2020-21, to 4.4% in 2025-26 — now faces its toughest challenge, it said.</p>.<p>Deepa Kumar, Head of Asia-Pacific Country Risk, S&P Global Market Intelligence, said the conflict has put a spotlight on energy and food security reforms.</p>