New Delhi, March 25 -- A prolonged conflict in West Asia lasting through much of 2026 could have severe consequences for India's economy, including sharp currency depreciation and a steep fall in equity markets, according to a report by Bernstein.

The report warned that in a worst-case scenario, the Indian rupee could weaken beyond 110 against the US dollar, while benchmark indices like the Nifty 50 could fall well below the 20,000 level.

It highlighted that India's strong economic performance over the past decade has been supported by relatively low crude oil prices.

"India's bright story on the global stage for the last several years had one common denominator - crude staying exceptionally low," the report stated.

Between 2014 and 2...