New Delhi, April 13 -- Escalating tensions in West Asia between the United States and Iran could widen India's current account deficit (CAD), and chances are high that the country may face higher inflation, widening fiscal pressures and currency weakness, according to Devendra Pant, Chief Economist at India Ratings and Research.

"The impact on the Indian economy will be felt through inflation, lower remittances if GCC (Gulf Cooperation Council) economies are impacted, higher subsidy (fiscal impact) and expansion of current account deficit leading to weakening of currency," Pant told ANI.

The US and Iran have been at war for over a month, with Iran blocking the movement of shipments of several commodities in the Strait of Hormuz. Only a ...