India growth seen at 6.5% but West Asia risks threaten inflation and rate cuts

Food prices could jump if West Asia disruptions linger

India’s economic growth is projected to hold near 6.5% this year, Gita Gopinath says, even as global uncertainty—especially the West Asia crisis—directly weighs on activity. She warns inflation may look contained only because firms are absorbing costs. That cushion could fade, pushing food prices higher. Oil shocks could spread across multiple sectors and even delay rate cuts.