India's economic growth is expected to decelerate to 6.6% in 2026-27 from 7.7% in the previous financial year, amid energy-related pressures, expectations of a below-average monsoon and slowing global growth, S&P Global Ratings said on Wednesday. Retail inflation is projected to rise to 5.1% this fiscal. The US-headquartered ratings agency expects gross domestic product (GDP) growth to recover to 7.2% in 2027-28. S&P's baseline forecast assumes that disruptions in the Strait of Hormuz will gradually ease during the second half of the year. While global oil prices are expected to remain elevated in the near term, they are projected to decline gradually and return to pre-Iran war levels by early 2028.