India's high-growth economy gets a Middle East oil shock

What Happened

India's rupee has hit record lows, falling nearly 10% against the dollar in a year due to Middle East conflict disrupting oil markets. The currency could plunge beyond 110 to the dollar in worst-case scenarios. Higher import costs, lower corporate margins, and reduced foreign investment threaten growth previously forecast at 7%. Rising inflation, supply constraints, and potential 1% GDP reduction loom. India faces energy security risks as it imports 60% natural gas and 90% LPG from the region.

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