India, March 7 -- India's economy could face fresh risks from rising geopolitical tensions in West Asia after the escalation of the United States (US)-Israel strike on Iran since February 28, which threatens global energy supply chains and could push up inflation and the country's import bill, according to the finance ministry's latest Monthly Economic Review for February released on March 6, 2026.

Prepared by the Department of Economic Affairs (DEA), the review cautioned that a prolonged conflict could undermine India's energy security, worsen the inflation outlook, and strain the external sector if disruptions to global oil and gas supplies continue.

The escalation follows military strikes by the US and Israel on Iranian sites, which ...