India's economic growth to slow to 6.8% in FY27 amid West Asia crisis, El Nino impact: Re
Economic Times 1 hr ago·18 Aug 2026, 7:54 am
India Ratings and Research has revised its FY27 GDP growth forecast to 6.8%, slightly higher than its previous estimate of 6.7%. However, the agency anticipates a slowdown in economic expansion from the current fiscal year, projecting growth to dip to 7.6% in FY26.
This moderation is primarily attributed to external headwinds, including the ongoing crisis in West Asia and the potential impact of the El Nino weather phenomenon. Additionally, persistent inflation and a weaker rupee are expected to weigh on domestic demand and trade flows.
For investors, this outlook suggests a more cautious environment for the broader market. While the growth rate remains robust, the risks of volatility are elevated due to these external factors. Investors should monitor central bank policy responses and monsoon patterns closely for further clarity.
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