Oil shock threatens India as UBS cuts growth and lifts inflation forecasts again

Published on 5 May 2026

UBS warns inflation may last even after growth cools

Geopolitical tensions in West Asia are feeding into India’s economy through an oil price surge. UBS Securities has cut its GDP growth forecast to 6.2% while revising inflation estimates higher, citing clear supply-side disruptions. Analysts warn demand resilience could still wobble if energy pressures persist, with inflation risks expected to outlast the growth shock.

UBS cuts India GDP growth forecast to 6.2%
Inflation estimates are revised upward due to energy costs
West Asia tensions are driving supply-side disruptions
Inflation risks may persist longer than growth impact

#india economy #inflation #gdp forecast #ubs #oil prices

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Oil shock threatens India as UBS cuts growth and lifts inflation forecasts again

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