Oil Shock Puts India's Growth and RBI in a Narrower Lane

Crude oil has surged 29% in a month, and the Finance Ministry warns that a sustained rise would enlarge India’s import bill and lift transport and logistics costs. The rupee’s September gains from foreign-currency deposits have also reversed as oil climbed. Growth indicators remain lively, but the government’s message is that momentum is not a force field against global shocks.

Headwinds

• Costlier oil: If prices stay high, pressure can spread from fuel and...