Israel-Iran conflict may hit India's economy in FY27: SBI Research
The ongoing Israel-Iran conflict might put a dent in India's economy in FY27 (the 2026-27 fiscal year), according to SBI Research.
Rising oil prices from the crisis could slow GDP growth by up to 0.25%, push inflation higher, and widen the gap between what India earns and spends globally.
Oil price hike could impact India
About 40% of India's crude oil imports pass through the Strait of Hormuz, a key route now at risk due to the conflict.
If oil prices jump $10 per barrel, inflation and India's current account deficit both rise noticeably.
In a worst-case scenario with oil at $130 per barrel, GDP growth could drop from 7% to 6%.
India is already buying more Russian oil
India is already buying more Russian oil to keep supplies steady if things get worse in Hormuz.
The government and refiners are looking for ways to make sure energy needs are met, even if global tensions stick around.