S&P Global Ratings has highlighted that India's robust domestic fundamentals and potential government support could cushion the economy against the impact of rising crude oil prices, primarily driven by conflicts in West Asia. However, the agency warns that if oil prices average $130 per barrel in 2026, India's economic growth could decelerate by up to 80 basis points in FY27. Additionally, corporate profitability is expected to decline by 15-25%, and the banking sector may see asset quality deteriorate, with weak loans potentially rising to 3.5%. Despite these challenges, S&P does not foresee an immediate impact on India's sovereign or corporate ratings, although the government's fiscal consolidation efforts could be temporarily hindered. S&P's scenario analysis assumes that Brent oil prices will average $130 in 2026 and $100 in 2027, significantly higher than its base case projections. The agency is closely monitoring the geopolitical situation and its effects on India's economic momentum.