In an exclusive interview with India Today, Gita Gopinath, Professor of Economics at Harvard University, discusses the impact of the West Asia conflict and rising oil prices on the Indian economy. She notes that the global supply shock of oil, LPG, and LNG is creating hardships for households and businesses. Gopinath warns that oil prices could reach one hundred and forty dollars a barrel, necessitating an economic adjustment through reduced consumption and voluntary restraint. Addressing the depreciation of the Indian rupee, she explains that a weaker currency helps cut back on imports and advises against intervening in the foreign exchange market to protect reserves. She states, “You do want some higher inflation, because that’s precisely the mechanism through which you get the adjustment.” Despite the challenges of creeping inflation and slowing growth, Gopinath highlights India’s macroeconomic resilience and strong consumption demand. She reassures that the current situation does not warrant extreme fear, emphasising that the Indian economy has enough strength to manage the external shocks without panicking.