New Delhi: Geopolitical tensions in West Asia pose risks to India’s trade and macroeconomic stability by widening the current account deficit (CAD), exerting pressure on the exchange rate, Niti Aayog said on Monday.The Aayog in its quarterly ‘Trade Watch Oct-Dec (Q3) FY 2025-26’ report further said that geopolitical instability in West Asia has slowed the India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA), affecting trade diversification and market access.The war in West Asia broke out on Feb 28 when the US and Israel launched strikes on Iran, and the latter retaliated.
