NEW DELHI: (Mar 3) Fitch Group company BMI on Tuesday said that the ongoing conflict in the Middle East could discourage investment in India, and offset the positive effects of trade deals with the EU and US on GDP.
Despite the favourable readings of policy uncertainty so far in 2026, BMI kept the FY2026/27 growth outlook unchanged, projecting a 7 per cent GDP expansion. It, however, flagged risks to the outlook but said it is currently assessing the geopolitical situation to quantify its impact on India’s GDP.
“From March onwards, we expect uncertainty to increase sharply due to the ongoing conflict in the Middle East. We believe this will discourage investment in India, offsetting the (EU and US) trade deals’ positive effects on GDP,” BMI said in its India outlook report.
Source: PTI News
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