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India Lets Deficit Reach 4.8% as Fuel Prices Soar

6/13/2026

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Story summary
  • India will let its fiscal deficit rise to 4.8% of GDP by March 2027, after higher fuel prices from the Iran-war closure of the Strait of Hormuz lifted costs 8% and cut gas subsidies.
  • The fertilizer subsidy is slated to jump 20% this fiscal year.
  • The Reserve Bank of India warned the oil-price surge creates growth and inflation risks as India, importing over 85% of its oil, adds Russian supplies.