Oil price shock loading: How India’s strong economic fundamentals will cushion the blow – explained in charts
India’s high growth and low inflation period has been dealt an oil shock. Since the start of the Middle East conflict and US-Iran war, crude oil prices have crossed $100 per barrel, in effect threatening the growth story of major economies around the world. India is not immune to the shock, especially as it has high import dependency when it comes to energy needs. However, agencies like IMF and S&P Global have expressed confidence in India’s fundamentals to tide over the current crisis.
In its latest World Economic Outlook report for April 2026, IMF has actually raised the growth forecast for India in the ongoing financial year to 6.5%.
