During a recent press briefing, RBI Governor Sanjay Malhotra expressed concerns regarding the potential impact of the ongoing West Asia crisis, particularly the Iran-US conflict, on the Indian economy. He noted that elevated crude oil prices could lead to increased imported inflation and widen the current account deficit. Malhotra outlined several challenges, including disruptions in energy markets that may adversely affect industry, agriculture, and services, thereby reducing domestic output. He also highlighted that heightened uncertainty could impact domestic liquidity, economic activity, and investment. Furthermore, weaker global growth prospects may dampen external demand and reduce remittance flows, while adverse spillovers from global financial markets could tighten domestic financial conditions. Despite these challenges, Malhotra reassured that the government is actively working to ensure the supply of critical inputs to mitigate the effects of supply chain disruptions. The RBI has decided to maintain the repo rate at 5.25% with a neutral stance, indicating a cautious approach in the face of these economic uncertainties. Additionally, a ceasefire between Iran and the United States has been announced, with peace talks scheduled for April 10, 2026, in Islamabad, Pakistan.