New Delhi, May 5 -- The ongoing US-Iran war, along with the resulting energy shock, supply chain disruptions, and elevated inflation, could weigh on India's economic growth in FY27, according to UBS.

The global brokerage has revised its India GDP growth forecast downward to 6.2% for FY27, from its earlier estimate of 6.7%, factoring in higher crude oil prices, supply-side disruptions, and expectations of a below-normal monsoon.

"We believe the ongoing energy shock would weigh on consumer sentiment, real incomes and spending, while adversely affecting industrial growth and squeezing margins for several sectors. We think investment growth will slow down amid rising input costs and weak sentiment due to geopolitical uncertainty," UBS said ...