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Current turmoil in West Asia deeply impacts India: Malhotra
Apr-21-2026

The Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that India is deeply affected by the current turmoil in West Asia, as the region accounts for approximately one-sixth of the country's exports, half of its crude oil imports, and nearly two-fifths of the inward remittances. According to him, India’s economy has sustained resilient growth over the past decade, supported by robust policy frameworks, financial stability, and sound fiscal policies.

He noted that India is increasing its domestic oil and gas production in response to the ongoing crisis. He said ‘Sources of imports are being diversified. While there is no shortage of oil, given the reserves maintained by us, there is some rationing of gas for industrial purposes.’

He underlined that while oil marketing companies and the government have absorbed some of the price pressures in oil, a portion of gas price increases has been passed on to consumers. Besides, he highlighted that India has recorded an average annual growth of 6.1% over the past decade, compared to the global economy's growth rate of 3.2%. Conversely, India’s closest peer economies, including China and Indonesia, posted growth rates of 5.6% and 4.2%, respectively.


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