However, the West Asia conflict and the consequent energy crisis have changed the Indian macro scenario from Goldilocks to vulnerable. The impact on GDP growth, the fiscal deficit, the current account deficit, the rupee, and corporate earnings will depend on the duration of the war. The energy crisis is a key risk It is the energy crisis triggered by the war that has impacted the Indian economy. This energy crisis is not just a price shock; it is a supply shock, too. Rupee's weakness may continue The fall of the rupee is partly a temporary trend, triggered by the oil shock and the consequent impact on the trade and current account deficits.

Source: Mint April 06, 2026 15:28 UTC