A report by CareEdge Ratings indicates that India's GDP growth could slow to 6.5% in FY27 if crude oil prices remain elevated at around $100 per barrel. This scenario would also push inflation above 5%, reflecting the economic strain from higher energy costs. Under normal conditions, with crude prices between $60 and $70 per barrel, GDP growth was estimated at 7.2%. As crude prices rise, the growth outlook diminishes, potentially dropping to 6.1% at $110 per barrel and below 6.0% at $120 per barrel. The inflation rates are also expected to rise, with projections of 5.1%-5.3% at $100 per barrel and up to 6.4%-6.6% at $120. The report emphasizes that sectors such as airlines and petrochemicals are likely to be heavily impacted due to rising input costs, while others like pharmaceuticals and renewable energy may face lower risks. Despite these challenges, domestic demand continues to support the economy, although rising crude prices pose significant risks to growth and consumption.