The Reserve Bank of India (RBI) has expressed concerns regarding the economic fallout from the ongoing conflict in West Asia, particularly the Iran-US tensions. In the Minutes of the Monetary Policy Committee (MPC) meeting held from April 6 to April 8, the RBI noted that disruptions in global supply chains, especially in the Strait of Hormuz, could lead to higher prices and lower growth for the global economy. The central bank warned that persistently elevated energy prices, exacerbated by the conflict, alongside potential El Niño conditions, could further increase inflation levels in India. El Niño is characterized by warmer ocean temperatures in the Pacific, which can lead to reduced rainfall during the Indian monsoon. For FY27, the RBI projects India's GDP growth at 6.9%, driven by strong domestic demand and an improving services sector, although risks from energy price volatility and global trade disruptions remain. The RBI has maintained the repo rate at 5.5% and anticipates headline Consumer Price Index (CPI) inflation at 4.6% for FY27, emphasizing a cautious approach to monetary policy in light of these uncertainties.