It’s one battle after another for the Indian economy. If tariff-related uncertainties threatened to reduce national output in FY26, the ongoing Iran war seems to be actually dragging down economic activity as we speak. Sensing the underlying damage, several forecasters have revised India’s growth projections downwards to a range of 5.9%–6.7% for FY27. The sharpest correction came from Goldman Sachs, which reduced India’s real GDP growth forecast to 5.9% for calendar year 2026, as against its pre-Iran war prediction of 7%.