Goldilocks Under Siege: West Asia War Ignites Oil, Threatens India's Economy

• West Asia war (US-Israel vs. Iran) endangers India's 'Goldilocks economy' due to rising oil prices and inflation.
• Strait of Hormuz, vital for 50% of India's crude imports, is heavily restricted, increasing shipping costs.
• Brent crude at $80/barrel invalidates RBI's $70 assumption, potentially widening current account deficit.
• GDP growth and inflation projections for FY26/FY27 need re-evaluation; sub-7% GDP and over 4% inflation possible.
• Markets see winners (upstream oil like ONGC) and losers (downstream oil, airlines) based on war exposure.