Reserve Bank of India Governor Sanjay Malhotra warned that India may need to increase retail fuel prices if the conflict in the Middle East continues. His comments followed Prime Minister Narendra Modi's call for voluntary austerity measures to conserve foreign exchange reserves, including reducing petrol and diesel consumption. The government's recent increase in excise duties on gold and potential further measures to limit imports were also discussed. Malhotra noted that while inflation edged up to 3.48% in April from 3.40% in March, the government has been absorbing higher crude costs. However, ongoing supply-chain disruptions from the conflict could impact India's economy. The RBI has projected a growth rate of 6.9% for the financial year, with inflation averaging 4.6%. The central bank is adopting a flexible approach, ready to respond to economic shocks as necessary, with its next monetary policy meeting scheduled for June 5.