New Delhi, April 8 -- India's economy faces a substantial hit from energy shocks and trade disruptions caused by the West Asia conflict.

The Indian economy is likely to grow at 6.6% in financial year 2026-27 (FY27), slowing from an estimated 7.6% expansion for the year ended March, reflecting headwinds from the West Asia conflict, the World Bank said in its South Asia Economic Update on Wednesday.

The multilateral agency's estimate is slightly lower than the 6.9% pace projected by the Reserve Bank of India (RBI) in its Wednesday's monetary policy statement and the government's estimate of 6.8-7.2% made in January before the US and Israel began pummelling Iran on 28 February.

Although last year's reduction in goods and services tax (GST...