Fitch Solutions' BMI unit has revised India's GDP growth projection for the financial year 2026-27 down to 6.8-6.9%, a decrease from the earlier estimate of 7%. The downgrade is attributed to the ongoing conflict between Israel and Iran, which is disrupting global supply chains and contributing to a slowdown in economic momentum. The previous year's GDP growth estimate has also been adjusted downwards from 7.8% to 7.6%. The report highlights a significant decline in high-frequency economic indicators, with industrial production growth dropping to 4.3% year-on-year in the first quarter of FY26, down from 5.3% in the previous quarter. The report emphasizes that the conflict raises business costs through higher energy prices, discouraging investment and further dragging down GDP growth. Despite these challenges, the Reserve Bank of India's monetary policy remains conducive to growth, and the government has implemented measures to mitigate rising fuel prices, including a $6.2 billion fund to cushion the economic impact. However, the outlook remains cautious due to potential negative foreign investment trends and increased logistics costs stemming from the conflict.