Economic Advisory Council Chairman Mahendra Dev discusses India's economic resilience amidst the West Asia conflict.
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India's economy remains resilient despite global uncertainties from the West Asia conflict, supported by strong fundamentals and stable inflation. The country's growth may moderate slightly, but there are enough buffers to manage near-term shocks, according to Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister.
India's economy is resilient due to strong fundamentals, stable inflation, and domestic demand. The GDP growth for 2025-26 is estimated at 7.6%. The current account deficit may widen to about 1.5% of GDP due to higher crude prices. Inflation is around 3% and may go up to 4 or 4.5% if the war continues. The RBI's FY27 inflation projection of 4.6% appears reasonable. The government has cut excise duties on petrol and diesel to shield consumers. Investment intentions slowed in the March quarter, but the government's focus on ease of doing business and deregulation provides a strong foundation for revival.
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