•Finance Ministry highlights strong macroeconomic fundamentals and ongoing reforms as key drivers for India's economic growth despite external challenges.
•Real GDP growth for FY27 revised upwards to 7-7.4%, building on three consecutive years of over 7% growth.
•Middle East tensions (US-Israel strikes on Iran) escalated, disrupting Strait of Hormuz, pushing Brent crude to $80 and LNG prices up 50%.
•India's economy is resilient to oil price hikes due to sufficient forex reserves, low Current Account Deficit (0.8% of GDP in H1 FY26), and controlled inflation.
•Fiscal consolidation continues with capital expenditure up 11.2% (April-Jan FY26); FY27 fiscal deficit target set at 4.3% of GDP.
