RBI governor Malhotra flags Iran war and monsoons as key risks to India's economy
Reserve Bank of India governor Sanjay Malhotra identified the Iran war's pressure on oil prices and the trajectory of this year's monsoon rains as the two key risks facing India's economy. Malhotra said both factors will shape the outlook for inflation and growth.
Reserve Bank of India governor Sanjay Malhotra said the two biggest risks facing the country's economy are the pressure that the Iran war is placing on oil prices and the trajectory of this year's monsoon rains. India imports the bulk of its crude oil, leaving it exposed to global energy shocks.
Malhotra said that if tensions between the United States and Iran persist, rising oil prices could push inflation higher. He also said that if the monsoon rains fall short in timing or volume, agricultural output and rural demand could suffer.
The RBI governor said the central bank is closely monitoring both risks and will adjust monetary policy accordingly if needed. Economists say either factor could prompt a revision to growth forecasts in the coming months.
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