Moody's Ratings has revised India's GDP growth forecast for 2026 down by 0.8 percentage points to 6%, attributing this adjustment to subdued private consumption, capital formation, and industrial activity, all exacerbated by rising energy costs. The agency's Global Macro Outlook highlights the uncertainty surrounding the global economy, particularly due to geopolitical tensions involving the US and Iran, which could impact energy prices and supply chains. For 2027, Moody's has also lowered the growth estimate by 0.5 percentage points, maintaining the 6% projection as the economy faces persistent headwinds. India's heavy reliance on imported energy—about 90% of its needs—makes it especially vulnerable to fluctuations in oil prices. While agricultural exports may benefit from higher prices, increased fuel and fertilizer costs could constrain government spending. The report underscores that high energy costs are likely to keep inflation elevated, compress profits, and weaken investments, posing challenges for public finances. As global energy shortages loom, India's economic recovery remains at risk, with the potential for further growth and inflation impacts if geopolitical tensions continue.