India's economy is under significant pressure following the closure of the Strait of Hormuz, which has reduced the country's crude oil supply by over 40%. In response, the Indian government has suppressed domestic fuel prices to protect public livelihoods, but this has led to substantial losses for oil companies. The Indian rupee has hit an all-time low, and foreign investors have withdrawn over $20 billion from the stock market in the first four months of 2026, surpassing last year's total outflows. The energy crisis has prompted the government to encourage energy conservation and release strategic reserves, but the economic impact is severe. India's GDP growth for the fiscal year 2026-2027 is projected to slow to 6.7% from 7.7% last year. Analysts warn that if the Middle East conflict persists, domestic fuel prices may need to rise in the second quarter, further straining the economy. The government maintains that there is no immediate supply shortage, with crude oil and liquefied gas inventories sufficient for several weeks.