Page 31 - FIPI - Policy & Economic Report May 2026
P. 31
POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
ADB noted that easing financing conditions and continued public capital expenditure are expected to
support infrastructure development and manufacturing activity. The report also emphasized the
importance of ongoing structural reforms and investment-led growth in sustaining India’s medium-term
economic momentum.
On inflation, ADB projected India’s inflation rate to rise to 4.5 % in FY2026 from 2.1 % in FY2025, mainly
due to higher food and global energy prices, currency pressures, and rising precious metal prices. Inflation
is expected to moderate to 4.0 % in FY2027 as commodity prices ease.
The report also cautioned that prolonged global geopolitical tensions, elevated crude oil prices, and
disruptions in global trade and energy supply chains could pose downside risks to India’s macroeconomic
outlook.
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