Rising energy import costs and Middle East tensions push India to exceed its budget deficit target for the first time since 2021.
India is poised to miss its fiscal deficit target for the current financial year, widening it to 4.8% of GDP. The shortfall reflects soaring energy import bills amid the Middle East crisis, straining public finances for the world’s third-largest crude oil importer.
The government had initially set a deficit target earlier this year but is now preparing to adjust it. The last time India missed its fiscal goal was in 2021, as global economic disruptions weighed on revenue and spending.
Officials cited the oil supply shock as a key factor, with import costs rising sharply. The deficit expansion could signal broader fiscal pressures as energy prices remain volatile.