New Delhi, May 29 -- State Bank of India's (SBI) Chairman Challa Sreenivasulu Setty has cautioned that while India's macroeconomic foundations remain sound, the spillover effects of the Gulf conflict could weigh on growth and reignite inflationary pressures in the year ahead.

In his message to shareholders, Setty said, "The financial year gone by unfolded against a backdrop of heightened geopolitical tensions, evolving trade dynamics, and persistent global economic uncertainty," TOI reported, citing the SBI's annual report.

"The global gross domestic product (GDP) growth is projected to slow down, largely on account of the West Asia conflict," he added.

Setty described these risks as not merely cyclical but structural, pointing to elev...