West Asia crisis lifts crude 23%, threatens India current-account deficit
Business
India's wallet could feel the pinch as the West Asia crisis pushes up crude oil prices, now 23% higher than last year, making imports more expensive.
A new Crisil report says this could widen India's current account deficit to 2% of GDP, with pricier gas, fertilizers, and disrupted exports adding to the strain.
Shipping and insurance raise growth risks
The report also flags rising shipping and insurance costs, which may further increase India's trade deficit.
There's concern for Indian workers in West Asia too; if their incomes drop, remittances back home could take a hit.
On the bright side, India's strong services sector might soften the blow.
But if tensions drag on, economic growth could slow from 7.1% to 6.8%, especially impacting manufacturing and construction jobs.