Prolonged conflict to hit energy costs, disrupt trade flows & financial markets

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Prolonged West Asia conflict risks higher energy costs, supply chain disruption, and inflation pressures for India's economy, according to RBI analysis. The conflict threatens trade flows and financial markets. However, strong macroeconomic fundamentals may help India withstand external shocks. RBI projects GDP growth at 6.9% for FY27, down from 7.6% in FY26.

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