Israel-Iran war to discourage investment into India, offset trade deal positives: BMI

BMI warns that the Iran-Israel conflict could dent India’s growth outlook by discouraging investment and raising energy costs, potentially offsetting gains from upcoming trade deals with the US and EU. While it retains a 7% GDP forecast for FY27, risks are rising—especially if disruption in the Strait of Hormuz pushes up oil prices, which could directly shave up to 0.5 percentage points off growth.