- The downgrade reflects a cautious stance amid geopolitical tensions and rising energy costs.
- Analysts led by Upasana Chachra cited a “terms of trade shock” as the main driver.
- The forecast assumes crude oil at $95 per barrel, raising input costs and forcing selective production cuts.
- With the rupee weakening, imported inflation is rising, prompting a CPI inflation forecast hike to 5.1% (from 4%).
- Additionally, the higher oil bill is expected to push the Current Account Deficit (CAD) to 2.5% of GDP, more than double the earlier 1%.
Question:
Q.1 Which global financial institution revised India’s GDP growth forecast for FY27 to 6.2% in April 2026?a) IMF (International Monetary Fund)
b) World Bank
c) Morgan Stanley
d) Asian Development Bank
Answer: c) Morgan Stanley lowered India’s FY27 growth forecast from 6.5% to 6.2%.
