Standard Chartered cuts India's FY2027 GDP growth forecast to 6.4%
Business
Standard Chartered just lowered its forecast for India's GDP growth in fiscal 2027 from 7.1% to 6.4%.
The bank points to rising oil prices and a likely weak monsoon as the main reasons, with economist Anubhuti Sahay noting these could "lead to deterioration of Indian growth and inflation dynamics" even though India's economy is generally strong.
Oil, weak monsoon risk India's inflation
Higher oil prices, thanks to ongoing conflict in the Middle East, are already slowing things like cargo movement and new projects.
If the monsoon underperforms, combined with pricier energy and fertilizer, headline inflation could go above 4.7%.
The Reserve Bank of India might keep interest rates steady for now, but if inflation or the rupee gets worse, a rate hike could be on the table too.