S&P Flags Triple Threat To India’s Economy: Oil, Inflation, And Weak Monsoon

Summary

India's economic growth is expected to slow down to 6.6 percent in the current financial year, due to rising energy costs, concerns over rainfall, and a slowing global economy. The country's real GDP growth is being weighed down by a combination of energy stress, expectations of a subpar monsoon, and weaker global growth, according to S and P Global Ratings. India's economy is particularly vulnerable to spikes in global oil prices, as it imports around 88 percent of its crude oil requirements, which could lead to higher inflation and increased production costs.