India Warns of Demand Hit to Economy as Iran War Boosts Cost

India is facing supply shocks from the Middle East war, and the resulting hit to domestic demand is a serious concern, the Finance Ministry said in its monthly economic review.

“A ‘supply shock’ is apparent in the economy,” the ministry’s Department of Economic Affairs said in the report. “An accompanying demand compression is a serious concern, given high prices, rising inflation, and a reduced pace of economic activity.”