India's economy expands at 7.8% over January to March
The world's fastest growing major economy, India, has been facing major headwinds due to the conflict in Middle East that began end of February.
TL;DR
- India's economy grew by 7.8% year-on-year in the three months to March.
- This growth exceeded the forecasted 7.2% due to improved trade prospects with the EU and reduced US tariffs.
- The Middle East conflict, starting in late February, poses a significant risk to India's economy, potentially hurting growth and raising inflation.
- India's central bank raised its inflation projection for the financial year ending March 2027 to 5.1% and lowered the growth forecast to 6.6%.
- Energy supply disruptions have increased India's import bill and put pressure on the rupee.
- El Nino weather patterns could lead to crop shortages and higher food prices.
- The Reserve Bank of India has adopted a 'cautious' policy due to deteriorating global economic conditions.