The ongoing West Asia crisis is a "live balance of payments stress test", with direct consequences for inflation, the current account, and the exchange rate, but India's fiscal consolidation path, infrastructure investment and reforms provide it a base to navigate the current environment of conflict, Chief Economic Advisor V Anantha Nageswaran said on Tuesday.
He said 87 per cent of India's crude requirement is imported, of which 46 per cent is transiting through or near the Strait of Hormuz, where the seven-day moving average tanker traffic has fallen to five vessels. 60 per cent of our LPG is imported, over 90 per cent via the Gulf. 38 per cent of annual remittances originate in Gulf countries.
