HSBC cuts India FY27 GDP forecast to 6% and warns of two RBI rate hikes

Energy crisis and weak rain drive both growth drop and inflation

HSBC expects India’s growth to cool to 6% in FY27, citing an energy crisis and insufficient rainfall. The same pressures are forecast to lift inflation, putting the Reserve Bank under pressure. HSBC says the RBI could raise rates twice this fiscal year, with the impact expected to hit the formal sector, rural households, and small businesses hardest.