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FY27 Indian growth to be 6.7% if avg crude price $90/bbl: Care Ratings
This is a downward revision from its pre-conflict growth forecast of 7.2 per cent for the fiscal, assuming crude oil averaging between $60 and $70 per barrel.
If global crude oil prices average at $90 per barrel for the full year, Care Ratings estimates India’s GDP growth to moderate to 6.7 per cent in FY27.
This is a downward revision from its pre-conflict growth forecast of 7.2 per cent, assuming crude oil averaging $60-$70 per barrel.
If crude oil prices average around $120 per barrel in FY27, it sees India’s annual GDP growth dropping below 6 per cent.
Downside risks to India’s growth outlook persist, given the possibility of a prolonged war situation and higher energy prices, the rating agency notes in a release.
In an extreme case scenario where global crude oil prices average around $120 per barrel in FY27, it sees India’s annual GDP growth dropping below 6 per cent.
Furthermore, the ongoing global headwinds also draw attention to India’s external sector vulnerabilities given its high energy import dependence, export and remittance exposure to the Middle East region and moderating capital flows.
Several other Asian economies like South Korea, Japan and China are vulnerable due to their relatively high energy imports from the Middle East. India’s total oil and gas import dependency is estimated to be around 4.2 per cent of its GDP (2024). Of this, reliance on the Middle East is estimated at about 2 per cent.
As India is dependent on imports to meet about 88 per cent of its total oil requirements and 51 per cent of its gas requirements, India’s consumer price index-based (CPI) inflation has become more sensitive to retail energy prices under the new series, with the combined weight of diesel, petrol, and LNG rising to 4.8 per cent from 2.4 per cent earlier, notes Care Ratings.
Assuming a full pass-through, a $10 increase in crude oil prices can lead to an estimated 55-60 basis points (bps) rise in headline inflation, with around 45 bps stemming from the direct effects and 10-15 bps from the indirect effects.
However, in the current scenario, the indirect inflationary pressures could be higher, given the risks of potential supply disruptions.
Overall, assuming global crude oil prices average at $90 per barrel in FY27, India’s CPI inflation is projected to average between 4.5-4.7 per cent—an upward revision from the earlier 4.3 per cent, which factored global crude oil prices ranging between $60 and $70 per barrel.
The revised inflation projection assumes that a large burden of the higher global crude oil prices will be borne by the government and oil marketing companies. Care Ratings has based its projection on the expectation that the these companies may be able to absorb an increase in Brent crude oil prices up to $106 per barrel.
A preliminary analysis by the rating agency suggests that the Indian government’s tax collections in FY27 could be lower by about ₹400 billion.
Overall, it estimates the fiscal burden from the excise duty cut on petroleum products, along with the possibility of an increase in fertiliser and fuel subsidy burden and lower tax revenue collections, to be around 0.5 per cent of GDP in FY27.
However, the government’s Economic Stabilisation Fund should provide some buffer to address rising fiscal pressures, it adds.
Fibre2Fashion News Desk (DS)
P&C v.3.2, which came into effect on April 1, follows an independent assessment of BCI’s standard against recognised regenerative programmes and industry-wide consultations to ensure alignment on the proposed changes.
“Our P&C is a living resource routinely updated to remain relevant and reflective of farmer realities. As climate change threatens farming communities, we have gone further to strengthen their focus on continuous improvement in relation to the principles of regenerative agriculture throughout our field-level standard,” Jannis Bellinghausen, BCI’s senior director of standards system integrity, said in a release from the organisation.
Better Cotton Initiative has launched a new version of its principles and criteria (P&C), marking the next step in the organisation’s journey to becoming a regenerative standards system.
P&C v.3.2, which came into effect on April 1, follows an independent assessment of BCI’s standard against recognised regenerative programmes and industry-wide consultations to ensure alignment on the proposed changes.
BCI’s P&C already covered soil health, biodiversity and natural habitats, water, pesticides and fertilisers use, and, where relevant, livestock. All these areas remain central to the standard.
The updated P&C strengthens the existing requirement of farmers to demonstrate continuous improvement by ensuring they place greater focus on regenerative agriculture when setting targets and annual activities.
Further updates to the field-level standard were made to the P&C’s management, natural resources, crop protection and decent work sections to enhance clarity and auditability.
In June 2025, BCI announced that it would transition to become a regenerative standards system at its conference in Izmir, Turkiye.
BCI head offices are in the United Kingdom and Switzerland.
Fibre2Fashion News Desk (DS)
Private investment and consumption are expected to remain strong, the latter supported by a gradual rise in real wages as inflation eases and labour shortages persist, the IMF said in a release after its executive board concluded the Article IV consultation with Japan recently.
Japan’s GDP growth is projected to remain strong in 2026, but to moderate to 0.8 per cent due to weaker external demand and the impact from the conflict in the Middle East, the IMF said.
Private investment and consumption are expected to remain strong.
From 1.3 per cent YoY in February, inflation is expected to rise this year before converging to the central bank’s target in 2027.
The Japanese economy has displayed impressive resilience in the face of global shocks and output is growing above potential. Domestic demand has been robust and unemployment remains low.
After three decades of near-zero inflation, prices grew faster than the BOJ’s target for over three and a half years before moderating in January.
While nominal wages are rising at a historic pace, there are persistent concerns about the cost of living as high inflation erodes household purchasing power, the IMF noted.
From 1.3 per cent year on year (YoY) in February, inflation is expected to rise this year before converging to the central bank’s target in 2027. Risks to the outlook and inflation are broadly balanced.
Recent fiscal performance has exceeded expectations, but the deficit is expected to widen in 2026 and spending on interest and health and long-term care for the aging population will continue to rise, eventually leading to an increase in the debt-to-GDP ratio from 2035.
Fiscal prudence is needed, including a plan to keep debt-to-GDP on a firmly downward path, the IMF added.
Fibre2Fashion News Desk (DS)
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