West Asia Conflict Slashes India's FY27 Growth Forecasts by 20-60 BPS

• Economists have lowered India's FY27 growth estimates by 20-60 basis points due to the ongoing West Asia conflict.
• The conflict has stoked inflationary pressures, leading to increased chances of lower consumption and exports.
• Higher crude oil prices, potentially averaging over $100/bbl, could push FY27 growth to 6-6.2 percent, down from a pre-war 6.6-6.8 percent.
• The finance ministry noted 'considerable downside' to its FY26 growth estimate and anticipates a significant rise in the trade deficit for FY27.
• Even with de-escalation, a return to pre-war crude oil prices is not expected, with economists warning of persistent energy shortages and inflation risks.