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India Deploys Multi-Pronged Defense as Rupee Faces Middle East Headwinds

India is mobilizing a comprehensive strategy to shore up its currency and foreign-exchange reserves amid regional tensions. Oil prices are rising due to the conflict. The government raised import tariffs on gold and silver while weighing emergency measures to curb non-essential imports and boost fuel prices. The Reserve Bank of India is exploring a decades-old mechanism involving state-run banks issuing foreign-currency bonds to attract capital inflows. Economists assess India's reserve position as robust enough to weather the shock, with buffers substantially above stress thresholds from previous currency crises. Inflation data released this week showed price growth below expectations, though energy-cost pressures remain a concern as the conflict persists. The coordinated measures reflect New Delhi's determination to limit economic fallout while defending the rupee's stability.