Reserve Bank of India Governor Sanjay Malhotra cautioned that if the conflict in West Asia continues, India may have to raise retail fuel prices. His comments followed Prime Minister Narendra Modi's call for austerity measures, including reducing petrol and diesel consumption to safeguard foreign exchange reserves. The government has already increased duties on gold imports significantly to curb demand for foreign goods. Malhotra noted that while excise duties have been cut and state-run fuel retailers are absorbing rising crude costs, sustained conflict could force the government to pass on price increases to consumers. India's inflation rose to 3.48% in April from 3.40% in March, lower than expected, but risks remain as energy prices rise. The RBI forecasts a growth rate of 6.9% for the financial year, with inflation averaging 4.6%. The next monetary policy meeting is set for June 5, where the RBI will evaluate the economic situation and adjust its approach accordingly.