New Delhi, Oct. 16 -- India could face renewed inflationary pressures if the Middle East conflict keeps energy prices elevated for longer, the International Monetary Fund (IMF) has warned, highlighting the risks to economic resilience from higher fuel costs despite the country's efforts to diversify oil supplies.

In its October 2026 Regional Economic Outlook for Asia and the Pacific, the IMF said India had adapted to disruptions in energy markets by securing oil from alternative sources outside the Middle East. This had helped restore supplies to levels seen before the conflict.

"For other large Asian economies (including India, Japan, and Korea), the resilience in part reflects adaptation by securing oil from alternative sources outsid...