SBI Report: India Strong Enough To Withstand Oil Surge
India is navigating the ongoing oil price surge and West Asia conflict from a position of resilience, with GDP growth projected at 6.8%–7.1% for FY27, according to a report by SBI Research.
The report noted that unlike past oil shocks that triggered recessions in the United States, the current scenario is different due to strong domestic factors such as energy self-sufficiency and fiscal support to households.
For India, the macroeconomic outlook remains stable, backed by robust growth of 7.6% in FY26, controlled inflation expected at 4.5% and a fiscal deficit projected at 4.5%-4.6%. A strong banking sector further supports economic stability, though the report highlights the need for policy measures to safeguard the balance of payments and the rupee.
While the geopolitical tensions pose challenges across agriculture, MSMEs, consumption and global supply chains, the report identifies emerging opportunities for India to strengthen its position in global value chains.
It also pointed to rising uncertainty in financial hubs like Dubai and Abu Dhabi, which could prompt global investors to diversify. This shift could benefit GIFT City as a stable alternative for international financial services.
