Reserve Bank of India Governor Sanjay Malhotra has warned that India may need to raise retail fuel prices if the conflict in West Asia persists. His comments follow Prime Minister Narendra Modi's call for voluntary austerity measures aimed at conserving foreign exchange reserves, including reducing petrol and diesel consumption and delaying gold purchases. The government has already more than doubled the duty on gold and is expected to introduce further measures to limit demand for imported goods. Malhotra noted that while excise duties have been cut and state-run fuel retailers have absorbed rising crude prices, it may only be a matter of time before these costs are passed on to consumers. India's inflation rose to 3.48% in April, slightly up from 3.40% in March, but remains lower than anticipated due to government interventions. However, the ongoing conflict poses risks to the inflation outlook as supply-chain disruptions begin to affect India. The RBI has projected a growth rate of 6.9% for the financial year, with inflation averaging 4.6%. The central bank has kept its key policy repo rate steady at 5.25%, emphasizing a data-driven approach to policy decisions.