India, March 31 -- The month-long Iran war, which is showing no signs of abating, can shave India's GDP growth rate by a full percentage in FY27, according to an EY report.

The fastest growing major economy in the world is likely to grow at roughly 6% as against a baseline of 7% estimated earlier, as retail inflation spikes by up to 150 basis points over the Reserve Bank of India's target of 4% due to a domino effect brought on by a surge in crude oil prices-a direct fallout of the Iran war, EY said in its Economy Watch report.

EY had projected India's GDP growth rate at 6.8% to 7.2% in FY27.

One basis point is one-hundredth of a percentage point.

India is seen as most vulnerable to the volatility unleashed by the Iran war, as the wor...