Given India’s external dependence on crude oil, the evolving situation requires close monitoring and proactive measures to limit adverse spillovers even though it is mention-worthy that the capacity and resilience of the Indian economy to absorb external shocks have strengthened over time, buttressed by its strong growth, sound macroeconomic fundamentals and robust external sector buffers, RBI noted in its monthly bulletin. In terms of energy security, India has progressively diversified its crude oil import sources and augmented its domestic refining capacity. Since the start of the conflict, several policy measures have been implemented to blunt the immediate impact of the disruptions in global fuel supply chains and to achieve more effective use of domestic capacity to meet shortfalls. The creation of an Economic Stabilisation Fund would further provide fiscal headroom and buffer to proactively respond to global headwinds. Further, the central bank noted that India’s foreign exchange reserves remain adequate, providing cover for goods imports for 11.2 months and around 95 per cent of the external debt outstanding.