Citi lifts India's FY27 forecast to 6.9% after oil drop

Citi expects India BoP surplus $45B

With lower oil costs, Citi now expects India's balance of payments surplus in FY27 to jump from $5 billion to $45 billion, a big leap driven by a $31 billion cut in net oil imports.
The current account deficit estimate dropped from 2% of GDP to 0.9%, and inflation is now forecast at 4.7% instead of 4.9%.
Because of these shifts, Citi thinks the Reserve Bank will keep interest rates steady through FY27, rather than raising them as previously predicted.