The Reserve Bank of India's Monetary Policy Committee (MPC) has expressed concerns that a prolonged conflict in West Asia could significantly impact India's economic growth and inflation rates. During their recent meeting, members highlighted the downside risks to growth and upside risks to inflation, prompting a decision to maintain the current policy rate. The conflict, which escalated following attacks on Iran and subsequent disruptions in the Strait of Hormuz, has already led to increased crude oil prices. MPC members emphasized that the duration of the conflict will be crucial in determining its overall economic effects. They also noted that the anticipated El Nino weather phenomenon could further strain inflation levels. As the global economy faces subdued demand, India's export sector may be adversely affected, potentially worsening the current account deficit, which has remained stable at 1.5% of GDP. The MPC's cautious stance reflects the need for ongoing vigilance as they monitor the situation for any persistent supply shocks.