Prolonged West Asia Conflict: India's GDP Faces 4% Hit, Warns Moody's Analytics

• Moody's Analytics warns India's GDP could drop 4% if West Asia conflict prolongs, making it one of Asia-Pacific's most affected economies.
• India's high reliance on oil and gas imports from Gulf countries makes it vulnerable to rising energy prices, impacting inflation and trade deficit.
• The report highlights India and China as major economies facing significant losses due to their dependence on oil and gas imports.
• Continuous energy cost increases could severely affect India's economic activity, despite government subsidies and price controls.
• Despite challenges, India's growth is projected at 7.5% in 2026, with inflation near RBI's 4% target, but commodity price hikes pose risks.