A new S&P assessment says India’s economy is taking a hit as Middle East conflict ripples into energy prices and supply. Higher fuel costs are straining public and private finances, while rising bond yields, stubborn inflation, and a weakening rupee weigh on growth prospects. Analysts urge faster reforms and stronger energy and food security through self-sufficiency and diversification.
India’s 10-year government bond yield jumped sharply on Friday, with the biggest weekly rise since May 2022. The move followed a cut in fuel excise duty that worsened the fiscal outlook, alongside heavy state bond sales and higher oil prices. Investors now face renewed uncertainty over borrowing costs and policy direction.
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