India’s Goldilocks moment is over, macro situation will worsen
Indian Express·2h ago·Concern
What Happened
India's favorable economic conditions have deteriorated due to West Asia crisis and rising energy prices. GDP growth projected to decline from 7.2 percent to 6.7 percent in 2026-27. High crude oil prices around $85-90 per barrel, combined with potential El Niño and monsoon weakness, threaten inflation, balance of payments, and government finances. Households currently shielded through excise duty cuts.
Key Entities
IndiaWest AsiaGDP growthcrude oil pricesinflationcurrent account deficitEl Niñomonsoon