New Delhi, May 19 -- The ongoing West Asia conflict has begun materializing as a major downside risk for the Indian economy, severely impacting international trade and inflating import costs.

According to a report by Crisil Intelligence, "The downside risks to the economy have begun materializing with over two months of unresolved West Asia conflict."

The agency further noted that, "The closure of Strait of Hormuz has created the largest energy shock on record. This will take time to normalise because of the damage to oil and gas infrastructure in West Asia, even after the route reopens."

The economic fallout is expected to hit India's import-dependent manufacturing sector particularly hard, while weaker global demand and trade bottlen...