CareEdge Ratings: $100 oil could cut India GDP to 6.5%
Business
India's economy might hit the brakes if crude oil prices keep climbing.
According to CareEdge Ratings, if oil averages $100 a barrel in FY2027, GDP growth could dip to 6.5%, down from the usual 7.2% when prices are lower.
The ongoing conflict in West Asia is driving up costs and making forecasts tricky.
Higher oil hits airlines and petrochemicals
If oil jumps even higher, to $110 or $120, GDP growth could slide closer to 6% or even below, while inflation might rise from around 5% up to nearly 6.6%.
Sectors like airlines and petrochemicals would feel the pinch most due to higher costs, while areas like oil marketing and fertilizers show some resilience.
Upstream oil and gas and pharmaceutical companies are expected to be less affected overall.