New Delhi, March 24 -- India's economy is likely to grow 5.9% in 2026, lower than the 6.5% estimated earlier this month, according to Goldman Sachs as it downgraded global growth forecasts to reflect higher energy prices and an expected longer disruption of energy trade via the Strait of Hormuz.

India's consumer price index (CPI)-based inflation is likely to be 4.6% this year, up from 4.2% estimated on 13 March, Goldman Sachs Global Investment Research said in its report, titled 'A tighter squeeze on Asia's energy supply', on Tuesday.

The closure of the Strait of Hormuz makes the Indian economy vulnerable to an energy shock as the country imported over 88% of its crude requirements in FY25. If prolonged, it could hit the annual budget a...