Analysis of India’s economic situation has tended to conflate several different themes. The immediate problem is, of course, the Strait of Hormuz stand-off. The rupee’s decline in value is its most visible symbol. An energy and commodities shortfall, remittances and exports concerns, amid demand destruction, have heightened fears of inflation and growth shock.
India is not alone. Across Asia and further afield, countries have suffered similarly. Petrol prices have spiked even in the US, which had presumed it was insulated. To be fair, India has managed fuel scarcity better than many others. Take LNG. Interruption in supplies from Qatar and the UAE has significantly — but not entirely — been made up by a diversity in sourcing: from the US to Nigeria and Oman.
