The Reserve Bank of India (RBI) has released minutes from its Monetary Policy Committee (MPC) meeting, highlighting the significant economic risks posed by the ongoing conflict in West Asia, particularly the disruptions in the Strait of Hormuz. The MPC noted that these disruptions have led to severe global supply chain issues, which complicate the macroeconomic environment for India. The RBI projects India's real GDP growth at 6.9% for the fiscal year 2026-27, but warns that this outlook is subject to downside risks depending on the conflict's duration and intensity. Inflation is projected to rise to 4.6%, up from 2.1% the previous year, primarily due to elevated energy prices and supply-side pressures. The MPC members emphasized that the conflict has adversely affected critical imports such as crude oil and natural gas, leading to increased costs and uncertainty in remittances and capital flows. In response to these challenges, the RBI has decided to keep the policy repo rate unchanged at 5.25%, maintaining a neutral stance while monitoring the evolving situation. The members acknowledged that while domestic economic activity remains robust, the external conflict is likely to exert pressure on growth through rising input costs and financial market volatility.