West Asia crisis so far may cost govt Rs 1.35 lakh crore, spending cuts unlikely: ICRA Chief Economist Aditi Nayar

The West Asia crisis may impose a fiscal burden of approximately Rs 1.35 lakh crore on India. Government spending has generally remained below budget estimates, providing financial flexibility for these pressures. Higher customs duty collections from gold and silver imports might help offset some costs. ICRA anticipates GDP growth to remain robust, exceeding 7 percent in the second quarter of FY27.