By Deepanshu Mohan and Saksham RajThe traditional hallmarks of Indian foreign policy have been put on trial. AdvertisementConsider India’s crude oil import basket. In such a context, divergence from US policy carries financial risks, as investors reassess risk in a dollar-dominated system. Higher oil prices raised the landed cost of energy imports, feeding into inflation and external imbalances. $6-8 billion in portfolio outflows set off a reinforcing cycle; higher oil prices widened the current account deficit, weakened the rupee, pushed up inflation, and drove further capital exits.

Source: Indian Express March 28, 2026 07:30 UTC