Iran War Silently Delivers Heavy Blow to India's Economy: Moody's Warns of GDP Drop

• Moody's Analytics warns prolonged Middle East tension could cut India's GDP by 4% from normal levels.
• India's heavy reliance on Gulf countries for oil and gas makes it vulnerable to rising oil prices and supply disruptions.
• Surging energy costs risk increased inflation and a wider trade deficit, impacting consumer spending and market demand.
• Asia-Pacific growth could slow from 4.3% in 2025 to 4% in 2026, with India, China, and South Korea facing significant losses.
• Despite challenges, India is projected to remain the fastest-growing major economy, though rising oil prices and a weakening rupee pose future risks.