Moody's Ratings has highlighted that Indian banks are among the most exposed in the Asia-Pacific region to the West Asia crisis, primarily due to India's high dependence on energy imports, which could lead to increased inflation, higher interest rates, and strained borrower cash flows.
Markets will look for clear guidance on how the MPC interprets the uncertainty and what it implies for the future course of monetary policy, points out Rajeswari Sengupta.
Prime Minister Narendra Modi will hold a video conference with chief ministers of most states to assess their preparedness and strategies in response to the ongoing conflict in West Asia.
The Islamic Revolutionary Guard Corps (IRGC) on Sunday issued a stark warning that American and Israeli universities in West Asia could be treated as 'legitimate targets' in retaliation for alleged United States and Israeli strikes on Iranian academic institutions and cultural infrastructure.
Pakistan's Prime Minister Shehbaz Sharif has engaged in extensive diplomatic efforts to de-escalate the conflict in West Asia, offering to host talks between the US and Iran and engaging with leaders from Saudi Arabia, Qatar, Malaysia, the UK, China, and the European Union.
Russian President Vladimir Putin has offered his support to help bring peace to West Asia, praising the Iranian people for their resilience. This comes as Iran seeks to resolve the conflict with the US, following discussions with Pakistani and Omani leadership.
Asian Development Bank (ADB) on Friday warned that India's limited crude oil reserves of about 100 million barrels - sufficient for only 40-45 days of consumption - leave the country particularly vulnerable to supply disruptions through the Strait of Hormuz amid the ongoing war in West Asia.
An Indian national has been killed in Kuwait following Iranian strikes on a power and water desalination plant, bringing the total number of Indian fatalities in the West Asia conflict to eight.
The Indian government reports casualties among its seafarers due to the ongoing crisis in West Asia and outlines measures to ensure the safety and welfare of its maritime personnel.
The Cabinet Committee on Security (CCS) has reviewed the evolving situation in West Asia, directing departments to assist Indian nationals affected by recent developments and emphasizing the need for dialogue and diplomacy.
The Indian government has implemented several measures to mitigate external risks, support the balance of payments, and maintain macroeconomic stability amidst the ongoing West Asia crisis, according to Minister of State for Finance Pankaj Chaudhary.
HDFC Bank reported an 8.04 per cent increase in its March quarter consolidated net profit to Rs 20,350.76 crore, but highlighted potential near-term risks for small-business borrowers due to the West Asia conflict. The bank's CEO also addressed the recent resignation of its non-executive chairman and hinted at a potential top-level reorganisation.
British Prime Minister Keir Starmer has called for a negotiated settlement with Iran and deployed additional fighter jets to West Asia to strengthen the UK's defensive operations.
The World Bank has affirmed India's strong position to withstand the current global energy shock, citing high foreign exchange reserves, fiscal space, and low inflation as key buffers supporting continued growth despite international headwinds.
Fleur Hassan-Nahoum, special envoy, foreign ministry of Israel, has asserted that the situation has effectively been a "multi-front regional conflict" since its inception, while claiming significant military and strategic gains against adversarial forces.
The US-Israeli military campaign, dubbed "Operation Epic Fury" by Washington, has entered its third day, with US President Donald Trump stating that operations would continue "until all of our objectives are achieved."
The Indian embassy in Tehran has earlier stated that it is facilitating the safe movement of nationals who wish to leave Iran.
Thousands of mourners gathered at Tehran's Imam Khomeini Grand Mosalla on July 4, 2026 for a farewell ceremony honouring Iran's late supreme leader Ayatollah Ali Khamenei. Khamenei was killed on February 28 in Israeli and US airstrikes. Grieving crowds carried his portrait and expressed raw emotion as Iran continues its multi-day state funeral proceedings for the slain leader.
Glimpses of Iran's farewell to Ayatollah Ali Khamenei as mourners gathered in huge numbers for his funeral procession in Tehran.
Thousands of mourners and international delegates gathered as Iran paid its final respects to its late supreme leader Ayatollah Ali Khamenei, who was killed in an Israeli strike on February 28, in Tehran.
Moody's Analytics predicts India will remain the fastest-growing major economy in 2026 and 2027, but its pace will moderate due to a global slowdown, geopolitical risks, and financial market volatility, despite the boost from AI demand.
China is significantly expanding its nuclear power sector, aiming to become a global leader by 2030. The country has the capacity to construct up to 50 nuclear reactors simultaneously, reducing reliance on fossil fuels.
Iran's Supreme Leader Mojtaba Khamenei will not attend his father, former Supreme Leader Ali Khamenei's, funeral due to security concerns stemming from Israeli threats. This decision follows a sharp warning from Iran's Foreign Minister to the United States, urging it to control Israel after its Defence Minister reportedly marked Khamenei for death. The incident highlights escalating tensions and ongoing diplomatic efforts to de-escalate hostilities in West Asia.
A gas agency in Pimpri Chinchwad, Pune, is under investigation after authorities discovered 57 illegally stocked LPG cylinders, amidst concerns about potential shortages due to the West Asia crisis.
Explore the resilient daily life in Tehran, where residents navigate geopolitical tensions and economic challenges with routine activities, showcasing a striking contrast between normalcy and underlying uncertainty.
'We may be able to wind back some of the schedule reductions we'd taken in recent months.'
Pakistan's Interior Minister Mohsin Naqvi visited Tehran for the third time recently to mediate peace amidst rising tensions between the US and Iran. Pakistan is actively leading diplomatic efforts to de-escalate the conflict in West Asia, which has impacted global energy markets and trade.
Iran's Islamic Revolutionary Guard Corps (IRGC) on Thursday claimed it had struck the US Al-Azraq air base in northern Jordan with 10 ballistic missiles on what it described as an "enemy command and control centre in West Asia" in retaliatory strikes in response to a recent attack on Tehran by Washington.
Iranian President Masoud Pezeshkian is on a state visit to Pakistan to discuss the full implementation of an agreement signed between Iran and the US, alongside regional and international developments. The visit also aims to strengthen bilateral cooperation across various sectors, following recent high-level talks between the US and Iran in Switzerland regarding regional security.
'If the war continue for a longer period of time, it is just a matter of time before the government will pass on some of the price increases.'
India's fertiliser subsidy bill is projected to increase by approximately 70,000 crore, reaching around 2.41 trillion in FY27, primarily due to rising import costs exacerbated by the ongoing West Asia crisis.
India's state-run oil marketing companies (OMCs) are projected to incur under-recoveries of approximately Rs 80,000 crore on liquefied petroleum gas (LPG) sales in FY27 if current loss levels persist, according to rating agency Icra.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf stressed on Friday (local time) that Tehran remains prepared for "full-scale defence" should the US betray the Memorandum of Understanding signed by the two countries last month.
US President Donald Trump announced a finalised peace deal between the US and Iran, set for signing on June 19 in Switzerland, with key figures like J D Vance, Steve Witkoff, and Jared Kushner from the US side, and Abbas Araghchi and Mohammad Bagher Ghalibaf representing Iran, alongside Pakistani mediators Field Marshal Asim Munir, Shehbaz Sharif, Ishaq Dar, and Mohsin Naqvi, playing crucial roles in the diplomatic breakthrough.
The United States has launched a fresh wave of airstrikes against Iran's Islamic Revolutionary Guard Corps (IRGC) in response to a deadly attack in Jordan that claimed the lives of two American service members, aiming to curb Tehran's maritime threats.
Heartbreaking scenes unfolded in Minab, Iran, as mourners gathered to bid farewell to the victims of the Israeli strike on a school on February 28, 2026.
Trump further alleged that Iran was behind the attacks on three vessels carrying Indian seafarers near the Hormuz Strait, which resulted in the deaths of three, despite the US Central Command having confirmed that the strikes were carried out by American naval forces, calling the incident "totally unacceptable."
The United States and Iran are scheduled to hold their initial round of talks in Switzerland on Friday, following a ceasefire agreement virtually signed by US President Donald Trump and Iranian President Masoud Pezeshkian.
Tensions in West Asia have dramatically escalated as Israel launched targeted military operations against Iran, triggering widespread blasts across strategic cities, following earlier Iranian projectile attacks on Israel.
S&P Global Ratings projects India's economic growth to slow to 6.6 per cent in FY27, down from 7.7 per cent in FY26, citing energy stress and a potential sub-par monsoon.
