India's heavy reliance on imported oil and fertilisers routed through the Strait of Hormuz, its dependence on remittance inflows from the Gulf and the possibility of an El Nino-led disruption to monsoon rains are among the biggest risks facing the economy amid the ongoing West Asia conflict, RBI Monetary Policy Committee (MPC) member Dr Nagesh Kumar said.
In his statement published as part of the minutes of the MPC's June 3-5 meeting, Kumar said the conflict has exposed several vulnerabilities in India's economic outlook despite the country's strong macroeconomic position.
