The IMF trimmed India's FY27 growth forecast to 6.4% this week, blaming the West Asia war and higher energy prices. Still, India remains among the world's fastest-growing major economies, with the fund expecting the economy to regain momentum and hit 6.7% in FY28.

Behind the Data

The downgrade is more about imported shocks than weak domestic demand. The rupee stayed under pressure near 95 to the dollar, opening at 95.28 on Monday. Forex reserves swung...