Finance Minister Nirmala Sitharaman on Sunday said India continues to remain the world's fastest-growing major economy, while addressing the BJP's Viksit Bharat event in Bengaluru.India’s economy expanded 7.7% in fiscal year 2025-26, up from 7.1% a year earlier. Growth in the January-March quarter stood at 7.8%, compared with 8% in the preceding quarter. The fourth-quarter figure exceeded the median estimate of 7.3% in a Bloomberg survey of economists and matched the pace recorded in the previous quarter.ALSO READ | Is India's economic growth real? Raghuram Rajan says something is offMiddle East conflict casts shadow over outlookEconomists and policymakers are increasingly reassessing India’s growth outlook amid rising geopolitical risks and mounting pressure from higher energy prices.Higher US tariffs, geopolitical tensions linked to the Iran conflict and rising energy prices have emerged as major risks to growth. India remains particularly exposed because of its reliance on imported crude oil and trade flows passing through the Strait of Hormuz.Concerns over inflation, tighter financial conditions and possible weather-related disruptions are also weighing on the outlook for both urban and rural demand.Before tensions in the Middle East intensified, Chief Economic Adviser V Anantha Nageswaran had projected growth of between 7% and 7.4% in the current financial year. That outlook has become less certain as the Iran conflict enters its fourth month without any clear diplomatic breakthrough between Washington and Tehran.After the GDP data was released, Nageswaran said India could return to growth above 7% by FY28 if macroeconomic stability is maintained and supply-side measures continue, even as global uncertainties weigh on the near-term outlook.His comments came hours after the Reserve Bank of India lowered its FY27 growth forecast to 6.6% from 6.9% projected in April, citing higher energy and commodity prices as well as continuing supply disruptions linked to the conflict in West Asia.