HSBC cuts India FY2027 growth forecast from 7.4% to 6%
Business
HSBC just lowered its forecast for India's GDP growth in FY2027 from 7.4% to 6%.
The main reasons? An energy crunch and weak rainfall thanks to El Nino, both pushing up prices.
With inflation heating up, the Reserve Bank of India (RBI) might raise rates in the December 2026 quarter and again in the March 2027 quarter.
RBI watches inflation, keeps 6.9% forecast
HSBC warns that slower growth could make things tougher for rural families and small companies, who already feel the pinch when prices jump or jobs slow down.
Meanwhile, the RBI is sticking to a more upbeat view, still expecting 6.9% growth in FY2027.
It is also watching inflation closely, especially with fuel prices possibly rising even more.