Overview
- ADB chief economist Albert Park said Tuesday that India’s growth could ease to about 6.3% this fiscal, roughly 0.6 percentage point below earlier estimates, with inflation rising by about 2.4 points to near 6.9% if energy disruptions continue.
- CII president Rajiv Memani warned growth could slip to 6.5% or lower if the West Asia conflict drags on, while a new S&P Global Ratings–Crisil report pegs growth at 6.6%, signaling a broad downgrade from prior projections.
- The rupee hovered near 95.36 per dollar on Tuesday and foreign portfolio investors have withdrawn about $21.2 billion this year, which has increased the strain on India’s external financing.
- Senior officials urged stronger buffers and diversification, with the EAC-PM calling for expanded strategic petroleum reserves and stockpiles of essentials, and an RBI MPC member pressing for more domestic oil and gas exploration and a faster clean‑energy shift.
- Authorities are using emergency tools and targeted fiscal steps to cushion the blow, yet delayed fuel pass‑through and a Rs 993 hike in commercial LPG signal rising input costs for transport, restaurants, and small firms if pressures persist.