Iran war threatens India’s ‘Goldilocks’ economy
Conflict exposes reliance on Gulf for energy and trade while posing diplomatic challenge to Narendra Modi’s government
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Narendra Modi calls on Indians to tighten their belts amid Gulf crisis
PM asks citizens to work from home, limit gold purchases and stop travelling abroad to conserve foreign exchange
India opens the door to China
Also in this newsletter: Middle East war triggers gas shortage
India more than doubles tariffs on gold imports
The government wants to curb non-essential imports to protect the rupee
Iran war will test the vulnerability of oil markets
While there are buffers of supply, spare capacity will come under pressure in the event of any further escalation
Iran war presents a different script for markets
Investors have been right to identify geopolitics as a rising risk factor