Iran War Impact: CEA Warns of Economic Slowdown if Oil Hits $130

• CEA V Anantha Nageswaran warns of significant impact on India's economy if crude oil prices reach $130 per barrel and sustain.
• If oil prices remain at $130 for 2-3 quarters, GDP growth could fall from 7.4% to 6.4%, with inflation rising to 5.5%.
• High oil prices could increase current account deficit from 1.2% to 3.2% and fiscal deficit from 4.4% to 5.6%.
• West Asia crisis increases global market instability; crude oil prices recently rose to $103 per barrel.
• Government is preparing a 'Strategic Energy Mitigation Framework' to deal with potential economic shocks.