‘Global Disruptions Pose Downside Risks’: RBI Slash India's GDP Forecast To 6.6% Amid Oil Shock

RBI downgraded India's GDP growth projection for FY27 to 6.6%, down from its previous estimate of 6.9%. While the MPC unanimously kept the repo rate unchanged at 5.25%, the policy statement focused heavily on the economic damage from the West Asia conflict. Governor Sanjay Malhotra stated that surging energy prices, broken global supply lines, and trade route gridlocks are actively hindering growth, forcing a lower quarterly growth outlook across the fiscal year.