India's GDP Growth Expected to Slow Due to West Asia Conflict
West Asia conflict fallout: India's GDP growth likely slowed in Q4
Business Standard
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India's GDP growth is projected to have slowed in the March quarter of FY26, primarily due to supply-chain disruptions caused by the ongoing conflict in West Asia. Despite this, overall economic activity remains resilient.
- 01India's economic growth is anticipated to have moderated in Q4 of FY26.
- 02Supply-chain disruptions from the West Asia crisis affected growth momentum.
- 03High-frequency indicators indicated a slowdown in economic activity for the quarter.
- 04Despite challenges, overall economic activity showed resilience.
- 05The slowdown is expected to be marginal rather than a drastic decline.
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India's economic growth is expected to have slowed in the March quarter (Q4) of the fiscal year 2025-26 (FY26), influenced by ongoing disruptions in supply chains due to the conflict in West Asia. These disruptions have tempered growth momentum, as indicated by various high-frequency economic indicators. While the overall economic activity remains resilient, the impact of the crisis has led to a moderation in growth rates. Analysts suggest that while growth has eased, it is not expected to decline drastically, reflecting some underlying strength in the economy.
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The slowdown in GDP growth could affect employment rates and consumer spending in India.
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