Crisil, a ratings agency, has cut India's GDP growth forecast for the fiscal year 2026-27 to 6.6%, down from 7.6% in the previous fiscal year. This adjustment is largely due to the impact of rising crude oil prices, which are now expected to average $90-95 per barrel, up from a previous estimate of $82-87. The ongoing conflict in West Asia has exacerbated global economic uncertainties, leading to higher inflation and supply chain disruptions. Crisil anticipates that inflation, measured by the Consumer Price Index (CPI), will average 5.1% in FY27, significantly higher than the 2.0% recorded in FY26. The agency also warns that the current account deficit (CAD) is likely to rise to 2.2% of GDP, reflecting increased import costs. Furthermore, the Indian rupee is projected to average 93.5 against the dollar by March 2027, indicating heightened external vulnerabilities due to the geopolitical situation. These factors are expected to constrain household budgets and private consumption, as well as delay business investments.