West Asia Crisis Threatens India's Growth, FY27 Outlook Uncertain: CEA

• Chief Economic Advisor V. Anantha Nageswaran warns of significant impact from West Asia conflict on India's macroeconomic outlook.
• Growth, inflation, fiscal, and external balances could face pressure, with a potential downside to FY27 growth estimate of 7%-7.4%.
• Conflict impacts India via supply disruptions (oil, gas, fertilizers), higher import prices, rising logistics costs, and reduced remittances.
• CEA anticipates widening trade and current account deficits in FY27 due to elevated import bills and external pressures.
• Nageswaran emphasizes targeted support for affected businesses/households, spending reprioritization, and building strategic commodity buffers.