Industry Odisha Bureau, Aug 19: Leading credit rating and research agency India Ratings and Research Private Limited (Ind-Ra) has reportedly estimated India’s gross domestic product (GDP) growth to moderate to 6.8% in the ongoing fiscal year 2026-27 (FY27) owing to hiking food and fuel inflation, a weak Indian currency as well as the El Nino-impacted monsoon on agriculture.
Media reports stated that, “Ind-Ra’s FY27 projection of 6.8% in August is higher than its May projection of 6.7%. This upward revision has come close on the heels of the Reserve Bank of India (RBI)’s revision of India’s GDP growth projection to 6.7% from 6.6% being attributed to resilient domestic economy.”
Media reports, citing the Ind-Ra’s latest report, have also stated that, “The El Nino weather pattern and the recent US government’s announcement of levying 100% tariff on India for buying Russian crude may also weigh on India’s growth. The GDP forecast of 6.8% assumes oil price settling around $85/barrel (bbl) in FY27, lower than the May assessment of crude price of $95 a barrel. A lower oil price, a weaker El Niño than the current assessment, and an improvement in capital flows could result in higher GDP growth than the current estimate.”
