Middle East Conflict's Ripple Effect on India's Economy
An EY report warns that if the Middle East conflict continues into the next fiscal year, India's real GDP growth could decrease by 1 percentage point, and inflation could increase by 1.5 percentage points. Sectors like textiles and fertilizers are at risk, impacting both supply and demand.
- Country:
- India
The ongoing Middle East conflict is taking a toll on India's economic forecast, as highlighted in EY's latest Economy Watch report.
Should the conflict persist into the next fiscal year, experts warn that India's real GDP growth could diminish by 1 percentage point and inflation could spike by 1.5 percentage points from baseline expectations.
Heavily reliant on crude oil imports, India faces vulnerabilities that may extend across key sectors such as textiles and fertilizers, warranting strategic government intervention to stabilize the economy.
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