Iran-Israel war: Every 10% rise in oil prices could shave 20–25 bps off India’s GDP growth, says HDFC Bank

Geopolitical tensions in West Asia are creating economic uncertainty for India. Higher oil prices could slow growth and increase inflation. The current account deficit may widen, and the Indian Rupee could face depreciation. The Reserve Bank of India is expected to manage currency volatility. The duration of the conflict will be key to the economic impact.