NEW DELHI, April 14 -- The government sees limited impact of the West Asia war on India's FY26 growth, but a prolonged disruption could force some pass-through of elevated global oil prices into retail fuel, according to two officials aware of an internal assessment.

The conflict, which began on 28 February, has heightened concerns around energy supply disruptions, particularly through the Strait of Hormuz, a key transit route for global oil trade. While the government has so far absorbed the shock through tax cuts and limited price increases, that cushion may narrow if high crude prices persist.

In FY26, India's economy is projected to have grown 7.6%, according to the second advance estimates released in February. The fourth-quarter G...