Iran conflict threatens India's economy across multiple fronts. Oil shipments through the Strait of Hormuz have stalled, potentially widening the current account deficit and fueling inflation. The rupee has weakened significantly, trading near 91.5 against the dollar, and further depreciation toward 100 could force the Reserve Bank to raise interest rates, delaying private investment recovery. Nine million Indian workers in the Persian Gulf face uncertainty as remittances hang in balance. Electronics exports to the UAE, India's second-largest destination after the US, are at risk. Shipping costs have surged following attacks on Dubai ports. Gold prices are climbing as households seek safe havens, straining government finances tied to metal-linked bonds. A prolonged conflict could severely test India's economic resilience during a fragile recovery period.
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