India`s GDP growth forecast of 7-7.4 per cent for FY2026-27 is facing uncertainty due to the evolving macroeconomic outlook amid the ongoing West Asia conflict, according to the Finance Ministry`s monthly economic review. The ministry said India enters FY2026-27 at a point where strong domestic fundamentals are being tested by external challenges. It noted that the economy grew by 7.6 per cent in the previous fiscal year, one of the strongest performances in recent years. It stated, “The outgoing fiscal year delivered real GDP growth of 7.6 per cent, the strongest in recent years, encouraging a 7-7.4 per cent forecast for the upcoming financial year, only to be clouded by an altered macro-outlook in the wake of the West Asia war”. However, the report highlighted that the West Asia war has introduced a “supply shock” into the economy, raising concerns about inflation, trade and financial flows. It added that demand compression is emerging as a key risk due to high prices, rising inflation and a slowdown in economic activity. The ministry said inflation could turn …