The surge in oil prices driven by the Middle East conflict is threatening India, one of the world's fastest-growing major economies. Since the crisis began in February, the rupee has depreciated by over 5%, continuing last year's decline and making it Asia's worst-performing major currency this year. On the 15th of this month, the rupee fell past 96 to the US dollar, a record low, prompting Indian officials to signal that preventing further depreciation has become a top macroeconomic priority. India's central bank has injected billions of dollars to stabilize the exchange rate, limit speculative trading, and provide special credit lines for oil importers to ease dollar demand. Prime Minister Narendra Modi has also called for voluntary austerity measures, including reducing gold purchases and foreign travel within a year. However, pressure persists due to significant foreign capital outflows, a weakening economic growth outlook, and a widening current account deficit. HDFC Securities analyst Dilip Parmar noted that 'the entire system has been disrupted,' but the rupee's depreciation is fundamentally a supply and demand issue, with higher demand for the US dollar. The depreciation comes as India faces an expanding current account deficit due to high energy imports, which Bank of America Securities estimates could exceed 2% of GDP this fiscal year, more than double last year's figure.