RBI Panel Member Discusses Economic Impact of West Asia Conflict
An external member of the Reserve Bank of India's rate-setting panel, Nagesh Kumar, stated that the ongoing conflict in West Asia presents immediate challenges for the Indian economy, including rising oil prices, export disruptions, and potential remittance losses. Despite these short-term issues, Kumar expressed optimism about India's long-term economic growth, projecting a rise in GDP growth from around 7% to 8%. He emphasized the importance of coordinated fiscal and monetary policies to achieve this goal. The inflation outlook remains stable, with the Consumer Price Index (CPI) projected at 2.5% for FY2026. Kumar noted that diversifying oil sourcing, including potential Venezuelan supplies, could help mitigate risks associated with the conflict.
Published 1 day ago • 05 Mar 2026, 01:44 PM IST