India news: Growth forecast slashed to 6% amid Iran war

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Moody's Ratings has slashed India's economic growth projections for the current fiscal to 6%, from 6.8% earlier.

The credit ratings agency said the US-Israeli war against Iran and its impact on the global energy market will weigh on India's growth momentum and heighten inflation risks.

"In light of India's economic exposure to the ongoing military conflict in the Middle East, we expect real GDP growth to moderate to 6% in fiscal 2026-27 from 6.8% earlier," India’s PTI news agency cited the Moody’s report as saying.

The agency projected India's economy facing a raft of challenges, including "subdued private consumption, softer industrial activity and a weakening in the momentum of gross fixed capital formation amid elevated prices and higher input costs."

India is the world's fourth-largest economy and third-biggest importer and consumer of oil. The South Asian nation also imports 60% of its liquefied petroleum gas (LPG).

The overwhelming majority of these fossil fuel supplies comes through the Strait of Hormuz, the key chokepoint in the Persian Gulf that Iran has effectively shut since US-Israeli strikes began on February 28.

New Delhi has since prioritized energy supply for households, squeezing the amount available for industrial use. Factories in sectors, including stainless steel and plastics, have cut back on production as a result.

As the conflict drags on, concerns grow over the rising energy import bill and the possibility of a wider current account deficit.

"While inflation remains contained for now, geopolitical risks have tilted the inflation outlook to the upside," Moody's said while projecting inflation to average 4.8% in FY27, up from 2.4% in FY26.

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Nine people, including six children, were killed after their vehicle plunged into an unprotected roadside well in Maharashtra's Nashik district.

The vehicle fell into a water-filled well in Dindori town late Friday while the victims, who were all members of the same family, were on their way home from a gathering, police said Saturday.

Officials said the 25-meter-deep well lacked adequate safety barriers and submerged the car completely, trapping all occupants.

Rescue teams retrieved the vehicle after more than two hours, and all nine victims were declared dead at a hospital.

Authorities are investigating the incident.

Families of victims of last year's Air India AI171 plane crash have written to Indian Prime Minister Narendra Modi, urging the release of the cockpit voice recorder (CVR) and black box data to determine the cause of the disaster, according to media reports.

Around 30 families from Gujarat said in a letter sent on Saturday that they "want to know the truth" behind the crash on June 12, 2025, which killed 260 people. Only one person, a British passenger, survived.

The Boeing 787-8 aircraft, flying from Ahmedabad to London, crashed shortly after take-off into a medical college hostel complex before bursting into flames.

Families said the lack of clear findings has deepened their grief, adding that if the data cannot be made public, it should at least be shared with them privately.

Copies of the letter were also sent to aviation authorities and Gujarat Chief Minister Bhupendra Patel.

India has imported Iranian oil for the first time since 2019, after the US waived sanctions on buying Iranian ⁠crude, authorities said on Saturday.

"Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports," India's petroleum ministry said in a statement on X.

India imports crude oil from over 40 countries, with companies retaining full flexibility to source supplies across geographies based on commercial considerations, the statement added.

India's procurement of Iranian crude comes as the world's third-biggest oil importer and consumer has been hit hard by the Iran war, which has severely disrupted global energy supplies.

The Indian government had to enforce emergency directives to manage the impending fuel crisis while also engaging with Tehran to negotiate safe passage for Indian-flagged ships.

The ministry statement also called reports that payment-related concerns were behind a tanker carrying Iranian crude rerouting mid-voyage from India to China on Friday "factually incorrect."

The ministry did not cite the reason behind the diversion.

Hi! This is Shakeel again bringing you the latest updates from across India this weekend.

Thank you for reading. We will be back on Sunday morning to bring you more of the main news in and about India.

See you then!

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Read more in this report by DW's Murali Krishnan.

The convoy of Shashi Tharoor, a member of parliament and senior leader of the opposition Congress party, was allegedly blocked and his security personnel assaulted in Kerala's Malappuram district, police have said.

The incident occurred on Friday as Tharoor was travelling to a campaign event in Wandoor, media reports said.

According to a police complaint, assailants in two vehicles stopped the convoy and attacked the parliamentarian's personnel when they tried to clear the way.

Tharoor confirmed the incident on X. "We carried on undaunted yesterday and concluded two more events as planned," Tharoor said.

Police have registered a non-bailable case against one accused and detained a suspect, with efforts underway to arrest others, media reports said.

The Times of India reported that five people were involved in the attack.

Tharoor is canvassing on behalf of his party in the southern Kerala state, which will vote on April 9, with counting scheduled for May 4.

Parts of north India, including new Delhi, felt the tremors as a 5.9-magnitude earthquake jolted Afghanistan early Friday.

The quake killed at least eight people in Afghanistan.

Read more here.

An LPG tanker, Green ⁠Sanvi, headed for India has crossed the Strait of Hormuz, live tracking data from the Marine Traffic website showed.

This is the seventh India-flagged tanker to cross the strait after the Iran war brought traffic through the waterway almost to a close.

The Mitsui-owned ship carrying 46,000 metric tonnes of liquefied petroleum gas (LPG) is scheduled to dock in Mumbai.

The war has severely disrupted global energy supplies, including India's, a country that is primarily dependent on LPG for its cooking needs.

India is also the world's second-largest LPG importer.

The government led by Prime Minister Narendra Modi had to enforce emergency directives to manage the impending fuel crisis while also engaging with Tehran to negotiate safe passage for Indian-flagged ships.

On Friday, a US-sanctioned tanker carrying Iranian crude rerouted mid-voyage from India to China. Experts said the vessel, Ping Shun, changed course from Gujarat's Vadinar to Dongying, possibly due to payment-related concerns.

Hello! This is Shakeel from DW's New Delhi studio, welcoming you to our weekend coverage.

Did you feel the nip in the air in New Delhi this morning? As we reported yesterday, it's due to western disturbances currently affecting the region.

Today, we are tracking an LPG tanker making its way to Mumbai after crossing the Strait of Hormuz.

Meanwhile, Congress MP Shashi Tharoor's convoy was stopped, and his security personnel were assaulted while he was travelling to an election rally in Kerala.

Also, parts of India felt tremors from the 5.9-magnitude earthquake that struck Afghanistan.

Stay tuned as we bring you the latest updates from across India.