Middle East Conflict Risks 1 Per Cent GDP Hit, 1.5 Per Cent Inflation Rise: EY Report

A new report from EY projects that the ongoing Middle East conflict could reduce India's real GDP growth by approximately one percentage point and increase retail inflation by about 1.5 percentage points in FY27 if the situation persists. The Indian economy's reliance on imported crude oil and natural gas makes it particularly vulnerable to such global shocks.