Is the Middle East conflict's economic hit to India bigger than officials are letting on?
Renewed disruption around the Strait of Hormuz has pushed up imported LNG and fuel costs, with Delhi's CNG price rising as a direct result. One estimate puts India's net additional cost across fossil fuels at around $14.4 billion, roughly 0.38% of GDP. The RBI has already downgraded its growth projections and raised inflation expectations in response to the broader disruption, though how much further this could extend depends on how the conflict evolves.
Delhi's CNG price rose to reflect higher imported spot LNG costs tied to Strait of Hormuz disruption.
One published estimate puts India's net additional fossil-fuel cost from the disruption at roughly $14.4 billion, about 0.38% of GDP.
The RBI has already revised growth projections down and inflation expectations up in response to the broader situation.