The Reserve Bank of India (RBI) has expressed concerns regarding the impact of the ongoing US-Iran war on India's economy, projecting a GDP growth of 6.9% and an inflation rate of 4.6% for the fiscal year 2026-27, assuming oil prices average $85 per barrel. The RBI noted that disruptions in the Strait of Hormuz could lead to elevated oil prices, which would widen the current account deficit significantly. For every $10 increase in crude prices, India's import bill could rise by approximately $12-15 billion. The RBI highlighted five risks that could negatively affect the economy, including increased imported inflation, disruptions in energy markets, reduced remittance flows, and higher borrowing costs. Despite these challenges, the RBI remains confident in India's economic fundamentals, citing strong domestic demand and government initiatives to bolster manufacturing. Economists believe that while risks are present, India's growth story remains resilient, with projections indicating that growth could stabilize between 6.5% and 6.9%.