India's economic landscape this week was significantly influenced by global uncertainties, particularly the crisis in West Asia, which affected oil prices and trade dynamics. The Reserve Bank of India (RBI) opted to maintain interest rates, reflecting concerns over inflation driven by volatile oil prices and geopolitical tensions. Moody's has revised India's growth forecast for the fiscal year 2027 to 6%, citing the impact of rising energy costs on domestic consumption. In March, India's crude import bill fell by nearly 5% due to disruptions in supply from West Asia, leading to substantial losses for oil marketing companies, which are currently absorbing losses of about ₹20 per litre on petrol and ₹100 on diesel. Despite these challenges, domestic demand appears resilient, as indicated by a rise in the flash composite Purchasing Managers' Index (PMI) to 58.3 in April, suggesting strong manufacturing activity. On the trade front, while seafood exports reached a record ₹72,325 crore in FY26, rice exports fell by 7.5% due to shipment issues linked to the West Asia crisis. Trade discussions with South Korea and the US are ongoing, aiming to strengthen economic ties despite existing friction.