Mumbai, March 4 The conflict in the Middle East poses some immediate challenges for the Indian economy, but it is unlikely to significantly impact long-term economic growth, according to an external member of the RBI's rate-setting panel.
Moving forward, there is a need for coordinated fiscal and monetary policies to push GDP growth to a higher trajectory, Nagesh Kumar has said.
In the current situation, rising oil prices, disruptions to exports, and the impact on remittances have been identified as the immediate challenges to growth, he said.
"The outbreak of the Middle East conflict poses some immediate-term challenges for the Indian economy, including rising oil prices, disruptions to exports destined for the region, and the potential loss of remittances, in addition to threatening the security of the Indian diaspora in the region," Kumar told