India sustains 7% growth amid fertiliser and energy supply shocks
India has sustained GDP growth of around 7% or more since the Covid-19 pandemic and the finance minister said this momentum should continue despite global uncertainty from wars, trade frictions and disruptions through the Strait of Hormuz. The Reserve Bank of India projects 6.7% real GDP growth for 2026-27, up 10 basis points from June. The government said it sourced fertiliser through alternate routes after imports via Hormuz were hit, kept stocks adequate and supplied energy to households, while absorbing heavy subsidy costs such as selling urea at ₹300 against a procurement cost of ₹3,000 per bag.
India maintained growth while heavily subsidising fertiliser and securing supplies.
Context
Global conflicts and Strait of Hormuz disruptions hurt energy and fertiliser trade. India arranged alternative imports and used subsidies to keep supplies steady. Next steps include fiscal consolidation toward the 2030 borrowing target and…
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