State Bank of India (SBI) has warned that rising tensions in the Middle East could put pressure on India’s economy. SBI said higher global crude oil prices may increase import costs and push inflation higher in the coming months.
According to the SBI annual report, the situation may also weaken the rupee and affect transport, industries, and foreign investments. The bank said global uncertainty continues to create challenges for developing economies like India.
SBI Chairman C.S. Setty said India still remains in a better position than many other countries because of strong domestic demand and government investments. He added that the Reserve Bank of India is closely monitoring the situation and taking necessary steps to maintain economic stability.
However, SBI also warned that if geopolitical tensions continue for a longer period, India’s economic growth rate during the current financial year could face some impact.
