As Iran war disrupts the Gulf, India’s growth story faces new risks

Synopsis India’s economy faces new challenges. Strong growth is threatened by rising energy prices and disrupted trade. The Middle East conflict impacts oil and gas supplies crucial for India. Remittances from Indian workers abroad are also at risk. This situation could lead to slower growth, higher inflation, and a weaker currency for India. Only a few weeks ago, the stars seemed to be aligning for India’s economy. India was one of the fastest-growing major economies, consistently outpacing its powerful neighbor, China. It had surpassed Britain to become the world’s fifth-largest economy and was within striking distance of overtaking Japan for…