India's 7% growth story hits Middle East oil reality check
India's economy faces its biggest external shock in years as the Iran conflict exposes dangerous energy dependencies, with 85% of crude imports and over half from the Middle East now at risk. Goldman Sachs and ANZ cut growth forecasts to 6.5% from 7% as Brent crude hit $114.35, while Indian stocks fell 10% since the war began. Every $10 oil increase widens India's current account deficit by 0.4% of GDP, potentially pushing it above 3% if prices sustain $150+ levels, threatening the Goldilocks growth phase that made India the world's fastest-growing major economy.
Sources
- Oil shock threatens Indian economy — Multibagg
- Wall Street turns on India as oil shock drives unprecedented crisis — TheStreet Pro
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