New Delhi, April 14 -- Indias strong macroeconomic fundamentals are expected to cushion the impact of a sustained spike in global oil prices, though economic growth could slow by up to 80 basis points (bps) if crude averages USD 130 per barrel in 2026, according to S&P Global Ratings.
Under this stress scenario, the agency projects a decline of 15 25 per cent in corporate earnings (EBITDA) in FY27, alongside a rise in leverage levels by 0.5x to 1x, PTI reported.
Corporate and Banking Sector Impact
The report noted that higher energy prices and supply disruptions linked to tensions in West Asia could weigh on economic activity across households, corporates and banks.
Asset quality in the banking sector may weaken, with non-perfor...