New Delhi, June 8 -- The war in West Asia seems to have had little effect on India's economy, going by the data so far. Official figures released on Friday showed real GDP growth in the last quarter of 2025-26 at 7.8%, year-on-year, taking the full year's growth to 7.7%. Although nominal growth was low, this counts as good going for a US-tariff-rattled fiscal year that ended in an outbreak of war.

The Iran conflict will impact how we fare in 2026-27, but as domestic tailwinds push against external headwinds, we could log growth of 6.6%, as the Reserve Bank of India (RBI) projects. Last quarter's momentum was broad-based, with factory output, construction and especially services setting a hearty pace. Since services make up well over half...