India Reports Economic Risks From Middle East Conflict

India faces economic risks from Middle East conflict despite domestic resilience. Rising energy costs and trade disruptions threaten to increase inflation.

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India warns that Middle East conflict risks are tilting growth lower after the IMF raised its FY2026-27 forecast to 6.5%. The government's monthly economic report follows a 7.6% GDP expansion in the previous fiscal year. Rising energy costs and trade disruptions threaten to widen fiscal deficits and accelerate producer-level inflation for global investors.

Energy Costs Drive Producer Prices Higher

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