El-Nino, below normal monsoon pose risk for growth, inflation outlook in FY27: HDFC Bank MD
HDFC Bank MD Sashidhar Jagdishan warned that global geopolitical tensions, El-Nino, and a below-normal monsoon could impact India's growth and inflation in the 2026-27 fiscal year. Despite these risks, he remains optimistic about India's long-term economic fundamentals and policy stability.
Why it matters
Provides insight into the economic outlook of India's largest private bank regarding climate and geopolitical risks.
The global macroeconomic environment remained challenging as the lingering impact of the West Asia conflict could weigh on global growth & inflation and the turn towards monetary tightening by major central banks remained a risk for global liquidity and growth, said India’s biggest private sector bank HDFC Bank’s MD & CEO Sashidhar Jagdishan in his message for shareholders in the bank’s latest annual report which was released on Saturday (July 11, 2026).
The volatility in financial markets due to AI related capital flows, any re-emergence of tariff risks or geopolitical tensions remain key risks ahead, he emphasised.
“Despite these uncertainties, India’s growth outlook remains favourable. Proactive policy measures by both the Government and the RBI are also expected to help mitigate external risks to India’s macroeconomic stability, including pressures on the current account and exchange rate,” he mentioned.
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