Reserve Bank of India (RBI) Governor Sanjay Malhotra highlighted the need for policy actions if the ongoing conflict in West Asia continues to impact oil prices. Speaking at a conference in Switzerland, he noted that Brent crude prices have skyrocketed by 45% to $107 per barrel since the conflict began in late February. Malhotra indicated that the government might have to increase pump prices for petrol and diesel if the situation does not improve, as India imports 85% of its crude oil, making it vulnerable to imported inflation. He stressed that while the RBI is currently flexible in its approach, it must be prepared to act if the supply shock becomes entrenched. The Indian rupee has depreciated nearly 5% due to the conflict, and the government has recently raised import duties on gold and silver to curb imports. India's inflation edged up to 3.48% in April, with the RBI projecting consumer price index (CPI) inflation for 2026-27 at 4.6% and real GDP growth at 6.9%. The next Monetary Policy Committee meeting is set for June 3-5, when further decisions will be made regarding monetary policy.