India’s economy faces rising risks from Middle East conflict in World Economy News 01/05/2026 India’s economy remains resilient but confronts mounting risks from the Middle East conflict, which has disrupted supplies of energy, fertilizers and industrial raw materials while raising costs and weakening trade, according to the government’s monthly economic report released Wednesday. India enters fiscal year 2026-27 at the intersection of domestic resilience and external turbulence, the report said. The West Asia war has altered the macroeconomic outlook following real GDP growth of 7.6% in the previous fiscal year. The government noted India remained a relative bright spot, with the International Monetary Fund raising its 2026-27 growth forecast for the country to 6.5% from 6.4%. The report warned that risks were tilted toward higher inflation, wider fiscal and external deficits and slower growth, especially if energy and fertilizer supply disruptions persist. India’s basket averaged $113 per barrel in March and was just under $115 per barrel this month through April 24. Higher wholesale prices showed that cost pressures were building, even though consumer inflation remained moderate. Retail inflation rose to 3.4% in March from 3.2% in February, while food inflation increased to 3.87%. Wholesale inflation accelerated to 3.88% in March from 2.13% in February, reflecting rapid transmission of higher energy and commodity prices at the producer level. The risks are tilted toward persistence rather than quick reversal of the price pressures, the report said. Trade weakened in March, with merchandise exports down 7.4% year-on-year and 24 of 30 major export categories declining. Exports to the United Arab Emirates and Saudi Arabia fell sharply as the Strait of Hormuz blockade raised freight, insurance and logistics costs. The report said remittances, which reached a record $135.4 billion in fiscal year 2025, could come under pressure if a prolonged conflict weakens Gulf labor markets. India’s unemployment rate rose to 5.1% in March from 4.9% in February. The report said labor conditions have broadly stabilized, while confidence in future job prospects has weakened, particularly in urban India. Source: Investing.com 2026-05-01 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share