India, May 20 -- India Ratings & Research (Ind-Ra) on Tuesday projected India's economic growth to decelerate to 6.7 per cent in the current fiscal year on slowdown in demand and supply and retail inflation is expected to stay within the RBI's tolerance band at 4.4 per cent despite recent fuel price hikes.

Ind-Ra's projection compares to 6.9 per cent GDP growth and 4.6 per cent inflation projection by the RBI.

The agency believes higher fuel and food prices due to the West Asia conflict's uncertainty and the likely impact of evolving El Nino on agriculture from mid-2026 will pull down GDP growth in FY27 to 6.7 per cent.

Indian economy is estimated to have grown 7.6 per cent in FY26.

"Major headwinds include geopolitical developments, ...