Business · India Bureau
India's growth likely eased to 7.1% in second quarter
Asia's third-largest economy is expected to have lost momentum in the April-June period as elevated oil prices pose fresh headwinds. With crude trading above $90 a barrel, rising import costs threaten to constrain the nation's economic trajectory.
LSN India ·
India's economic growth is forecast to have moderated to 7.1 percent in the second quarter of the fiscal year, according to a poll of economists, signalling a slowdown from the previous period's pace.
The deceleration comes as external pressures mount on the world's fastest-growing major economy. Crude oil prices, hovering above $90 per barrel, are creating headwinds for the import-dependent nation, which sources more than 85 percent of its oil from overseas markets.
Higher petroleum costs typically feed through to transportation expenses and energy prices, eventually impacting inflation and consumer spending patterns across the broader economy. Market analysts warn that further price increases could exert greater pressure on growth projections going forward.
The vulnerability underscores India's exposure to global commodity markets despite its domestic growth strengths. Policymakers face a delicate balancing act as they seek to maintain momentum while navigating volatile international energy dynamics that remain largely beyond their direct control.