New Delhi, March 31 -- India's economic growth could slow and inflation may rise if the ongoing conflict in West Asia continues into the next financial year, according to the EY Economy Watch report.

The EY report estimates that real GDP growth could decline by about 1 percentage point, while retail inflation may increase by around 1.5 percentage points from baseline projections, PTI reported.

Sectoral Impact and Demand Concerns

The report highlights that several sectors-particularly employment-intensive ones such as textiles, paints, chemicals, fertilizers, cement and tyres-could face direct impact.

A decline in jobs or incomes in these sectors may weaken overall demand, affecting both supply and consumption conditions.

India's heav...