Oil shock may dent India’s FY27 growth: EY
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New Delhi: India’s economic growth could take a hit in FY27 if the ongoing Middle East conflict continues, with real GDP projected to slow by about 1 percentage point and retail inflation rising by nearly 1.5 percentage points, according to an EY report.
The EY Economy Watch report noted that sectors such as textiles, paints, chemicals, fertilisers, cement and tyres, many of them employment-intensive, are likely to face direct disruptions. Any hit to jobs or incomes in these sectors could weaken overall demand, compounding the impact on growth.
India remains particularly vulnerable due to its heavy dependence on energy imports. The country imports nearly 90 per cent of its crude oil needs and re-lies significantly on natural gas and fertilisers from abroad.
