In FY27, India's economy grapples with inflation that hits hardest in rural regions, where rising food prices become an urgent concern. The eyes of policymakers are fixed on the monsoon's trajectory, a key determinant for crop health. Global factors, such as elevated crude oil prices and geopolitical strife, further exacerbate inflationary trends.

Nuvama warns that rising oil prices and weak monsoon could increase stagflation risk for India's economy in FY27.

India's economic growth is projected to slow to about 6.5 percent in fiscal year 2027. Higher costs, global tensions, and a potentially weak monsoon are key concerns. Despite…