IMF Warns On Energy Risks: Middle East conflict could stoke India inflation; growth, fisc at risk

India could face inflationary pressures if the Middle East conflict results in sustained high energy prices. The International Monetary Fund warns that prolonged energy price increases could slow economic growth, raise living costs, and worsen fiscal balances. Governments may find it harder to provide support to vulnerable populations without straining finances. The IMF emphasizes targeted assistance measures over broad subsidies to alleviate costs effectively.