India's central bank governor warned that the Middle East crisis could trigger persistent inflation if supply disruptions continue, given the country's deep economic ties to the region. Reserve Bank of India Governor Shaktikanta Das highlighted how ongoing conflicts could disrupt energy supplies and trade routes, potentially driving up prices for essential goods.

India imports significant volumes of crude oil from Middle Eastern nations, making it particularly vulnerable to regional instability. The central bank has been monitoring inflationary pressures closely, with consumer prices already running above the RBI's comfort zone. Any sustained supply shocks could complicate monetary policy decisions and economic growth projections.

Das emphasized that the RBI's inflation forecasts could be revised upward if the crisis escalates, potentially forcing the central bank to maintain higher interest rates for longer. The warning comes as global markets remain jittery about Middle East tensions and their potential to derail economic recovery efforts worldwide.