EY warns Middle East conflict could dent India FY27 growth
Business
The ongoing conflict in the Middle East could slow down India's economy, with EY warning that GDP growth might drop by around 1% point in FY27.
Because India imports nearly 90% of its crude oil requirements, the recent chaos has pushed oil prices up nearly 50% since February, making everything from fuel to daily essentials more expensive and likely raising inflation by about 1.5% points.
Government sets ₹1L/cr economic stabilization fund
Industries like textiles, chemicals, and cement could see job losses as a result of higher costs and lower demand.
To help soften the blow, the government has set up a ₹1 lakh crore Economic Stabilization Fund and is looking at working with larger and more industrialized states to keep things steady.