Keep pulling the thread on Raghuram Rajan.
The US-Israeli war against Iran has been ongoing for three weeks, raising concerns about its impact on the global economy.
The Indian stock market has lost $639 billion in value since the beginning of the conflict.
The ongoing conflict in the Middle East has disrupted approximately 20% of the world's total energy production.
A prolonged conflict that shuts in 15-20% of world energy sources could cause oil prices to rise into the $150 to $200 per barrel range.
India's imports via the Strait of Hormuz account for 50% of its crude oil, 85% of its LPG supplies, and 55% of its LNG shipments.
The IMF's managing director, Kristalina Georgieva, warned that a persistent 10% increase in oil prices would result in a 40 basis point increase in global inflation.
A $10 increase in the price of oil widens India's current account deficit by approximately $17 billion, which is equivalent to 0.5% of its GDP.
If the current conflict continues for another month, the world economy will be in serious trouble.
The government of India has created a 1 lakh crore INR economic stabilization fund to respond to global headwinds and supply chain disruptions.
The 1 lakh crore INR stabilization fund represents the outer limit of India's fiscal capacity to subsidize the economy through the current crisis.
India's pharmaceutical industry is vulnerable because many of its active pharmaceutical ingredients (APIs) are sourced from a single country.
India does not have the capability to manufacture high-quality semiconductor chips in the short run and will require time to become independent of global supply chains.