The Organisation for Economic Co-operation and Development (OECD) has revised India's growth forecast for the financial year 2027 (FY27) to 6.3%, an increase from its earlier estimate of 6.1%. This adjustment reflects concerns over energy price shocks stemming from ongoing conflicts in West Asia, which are contributing to inflationary pressures. The OECD anticipates that inflation will rise to 4.8% in FY27, up from 2.1% in FY26, driven by higher food and energy prices and a depreciating rupee. In response, the Reserve Bank of India (RBI) is expected to raise the policy repo rate by 25 basis points to maintain inflation within the target range of 2-4%. The report warns that persistent energy supply disruptions could further constrain production and inflate prices, impacting household purchasing power and slowing private consumption growth. Additionally, the current account deficit is projected to widen as rising energy import costs outweigh reduced domestic demand. The OECD suggests that targeted fiscal measures could be more effective than broad price supports in mitigating these challenges, while also projecting a potential growth increase to 6.4% in FY28 as inflationary pressures ease.