After initially moving quite slowly, India’s government has stepped up its response to the impact of the Middle East conflict over the past few days. Excise duties on fuel exports have been hiked to ensure greater domestic supply, while domestic fuel duties have been trimmed. And the energy shock may also have played a role in the government’s earlier-than-expected confirmation this week that the RBI's current inflation target of 4%, with a tolerance band of 2-6%, will be retained for another five years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services