India news: Growth Forecast Cut to 6% Due to Iran Conflict

Moody’s credit ratings agency indicated that the Iran conflict and its effect on global energy supply could reduce India’s growth momentum. DW provides the latest updates. Below is a summary of recent news from India over the weekend of April 4-5:

Moody’s Adjusts Economic Outlook

The agency revised India’s growth projection for the current fiscal year to 6%, down from 6.8% previously. This adjustment reflects concerns over the ongoing US-Israeli campaign against Iran and its implications for global energy markets. “India’s economic vulnerability to Middle East tensions suggests real GDP growth will decline to 6% in fiscal 2026-27, compared to 6.8% earlier,” PTI news agency reported.

“Geopolitical risks have shifted inflation expectations upward,” Moody’s noted, forecasting an average inflation rate of 4.8% in FY27, up from 2.4% in FY26.

India, the world’s fourth-largest economy, relies heavily on oil imports, with 60% of its liquefied petroleum gas (LPG) sourced externally. The majority of these supplies pass through the Strait of Hormuz, a critical Gulf passage that Iran has disrupted since February 28. As a result, New Delhi has shifted focus to securing domestic energy needs, limiting availability for industry. This has led to reduced production in sectors like stainless steel and plastics.

Tragic Roadside Accident in Maharashtra

Nine individuals, including six minors, lost their lives when their vehicle fell into an unguarded well in Dindori, Maharashtra. The incident occurred late Friday, during a family trip home from a social event. The 25-meter deep well, lacking safety barriers, submerged the car entirely, trapping all occupants.

“The well’s depth and absence of protective measures caused the car to be fully submerged,” police stated Saturday.

Rescue efforts took over two hours to recover the vehicle, and all victims were confirmed deceased at a hospital. Investigations are ongoing to determine the cause of the accident.

India Imports Iranian Crude for First Time Since 2019

Indian authorities announced that the country has begun importing Iranian oil, marking a return to purchases since 2019. This follows the US lifting sanctions on Iranian crude imports, enabling refiners to secure supplies without financial obstacles. The petroleum ministry confirmed, “Middle East supply disruptions have allowed Indian refiners to meet crude oil demands, including from Iran.”

India sources crude oil from more than 40 nations, ensuring flexibility in supply chains. The recent move underscores the nation’s adaptability in the face of global market volatility.

Innovative Algae Project in India

Indian scientists are cultivating microscopic algae in large water tanks, which surpass trees in air purification efficiency. The project aims to address urban air quality issues by leveraging the algae’s superior ability to filter pollutants. A video detailing the initiative is available for viewing, requiring JavaScript and an HTML5-compatible browser.