India unlikely to revise fiscal deficit target despite Gulf crisis, capex stays priority

 India remains committed to its fiscal deficit target for 2026-27, prioritizing capital expenditure despite Middle East tensions impacting oil prices. While austerity measures are considered, crucial infrastructure projects are protected. Officials suggest subsidy targeting and savings could offset added fiscal pressure, but economists warn of potential slippage if fuel prices remain capped. India remains committed to its fiscal deficit target for 2026-27, prioritizing capital expenditure despite Middle East tensions impacting oil prices. While austerity measures are considered, crucial infrastructure projects are protected. Officials suggest subsidy targeting and savings could offset added fiscal pressure, but economists warn of potential slippage if fuel prices remain capped.