New Delhi, April 14 -- India's strong domestic fundamentals, potential government support, and significantly improved corporate and banking health would soften the blow of rising crude oil prices caused by West Asian conflict, according to S&P Global Ratings. However, persistently high energy costs could still drag down overall economic growth, the rating agency noted.

In its scenario analysis on India, if oil prices average $130 a barrel in 2026, the country's growth could slow by up to 80 basis points in FY27.

S&P Global Ratings said that if oil prices remained elevated, corporate profitability would also come under pressure, with earnings before interest, tax, depreciation and amortization (Ebitda) expected to fall by 15-25% in FY27,...