RBI’s message is clear: the initial supply shock can potentially transform into a demand shock. (AI image) The US-Iran war has caused major disruptions for global markets and economies, and India as the world’s fifth largest economy is not immune to the shock. Heavily dependent on imports to meet its
RBI’s message is clear: the initial supply shock can potentially transform into a demand shock. (AI image) The US-Iran war has caused major disruptions for global markets and economies, and India as the world’s fifth largest economy is not immune to the shock. Heavily dependent on imports to meet its crude needs, a rise in global oil prices above $100 per barrel and the supply bottlenecks created due to the de facto closure of Strait of Hormuz have hit various sectors of the economy. But how big is the hit likely to be? Is India’s growth story at the risk of being derailed by the Middle East conflict?The Reserve Bank of India in its first monetary policy review of 2026-27, while keeping repo rate unchanged, has expressed confidence in India’s fundamentals, firmly stating
