Topic
economic outlook
Business EY Forecasts India GDP Growth of 6.6-6.8% in FY27 on Resilient Domestic Demand, Lower Energy Prices
EY's Economy Watch expects India's real GDP to grow 6.6-6.8% in FY27, driven by resilient domestic demand, lower global energy prices, and normalisation of Strait of Hormuz shipments. CPI inflation is projected at 4.5% and the current account deficit at 1.5% of GDP.
Finance Wall Street Outlook: Jobs Data, Fed Rate Bets to Test US Stock Rally After Strong First Half
The S&P 500 is on track for a 7% first-half gain, but June volatility and a pivotal jobs report could test the rally. Fed rate hike odds rise with inflation above 4%, while AI and semiconductor stocks remain volatile. Markets also monitor Middle East ceasefire impact on oil prices.
Business India Government Sees GDP Momentum Intact, No Extra Borrowing Needed Despite Middle East Crisis
The Indian government remains confident in its growth outlook despite rising fuel and fertiliser import costs from the Middle East crisis, with sources saying GDP momentum is intact and no additional borrowing is needed. The government targets a fiscal deficit of 4.3% of GDP for FY27 and plans to reassess macroeconomic conditions in July after Q1 growth data.
Commodities Oil shock to inflation risk: How Middle East war is reshaping India's economic outlook
The Iran war is causing a severe oil shock for India, the world's third-largest oil importer. Benchmark crude surged to nearly $120/barrel, and natural gas prices rose 75%. The RBI now expects inflation to average 5.1% in FY27, up from 3.48% in April, and economic growth to slow to 6.6% from 7.7%. Supply disruptions at the Strait of Hormuz and higher fertiliser costs are compounding risks for key crops like wheat amid a potential El Nino.