India's fiscal 2027 growth could top 7% with $70 oil
India might see its economy grow faster than expected (possibly over 7% in fiscal 2027) if global oil prices stick around $70 a barrel.
This upbeat outlook comes from RBI's external MPC member Nagesh Kumar, who points out that easing tensions in West Asia and lower energy costs are helping inflation stay in check and boosting the country's growth prospects.
Deficit narrowed from 6.5% to 4.4%
Since India imports more than 80% of its oil, price swings really matter.
Falling crude prices have made things easier for both companies and consumers, shrinking inflation worries and narrowing the fiscal deficit from 6.5% to 4.4% through the government's fiscal consolidation efforts.
That gives the government more room to invest in infrastructure, even as food inflation and El Nino risks linger; public investment is still keeping India's economy moving forward.