India's Economy Shows Resilience Amid West Asia Conflict, Ministry Warns of Risks

India's macroeconomic outlook remains resilient despite escalating West Asia tensions, supported by strong foreign exchange reserves and manageable trade deficits. However, the Finance Ministry warns that prolonged conflict, especially disruptions in the Strait of Hormuz, could raise oil prices, widen the current account deficit, weaken the rupee, and increase inflation. Sectors reliant on crude and LNG, such as chemicals and petrochemicals, may face margin pressures. The long-term economic impact remains uncertain amid ongoing geopolitical risks.