Israel-iran War: India Keeps A Close Tab, But Trade Unaffected For Now

India continues to show nan effect of nan ongoing conflict betwixt Israel and Iran pinch concerns complete nan important Strait of Hormuz that could move into a cardinal chokepoint for world trade, peculiarly for crude oil.

According to sources, nan Department of Commerce has besides sought inputs from various ministries arsenic good arsenic stakeholders connected whether they are facing immoderate effect from nan ongoing war. Commerce Secretary Sunil Barthwal had connected Monday said nan section will beryllium gathering shipping lines and instrumentality associations to measure nan effect of nan conflict.

However, India’s waste and acquisition pinch some Israel and Iran remains limited. For India, nan waste and acquisition of commodities specified arsenic cereals, edible fruits and nuts, gems and jewellery, ceramic products, could get impacted from a continuing conflict betwixt Israel and Iran.

For now, India remains comparatively unaffected arsenic waste and acquisition continues on nan Strait of Hormuz. “As of now, location is nary rumor astatine nan Strait of Hormuz. If that gets affected past moreover waste and acquisition on nan Red Sea and Suez Canal will beryllium impacted,” said Ajay Sahai, Director General and CEO, Federation of Indian Export Organisations (FIEO).

He besides elaborated that location is small effect connected aerial freight arsenic of now and oversea freight has not been impacted. But pinch nan warfare intensifying, nan warfare consequence premium is group to spell up from astir $50 to $200 per instrumentality to $200 to $400 per container. The premium for wide security could besides emergence and if lipid prices transverse $100 per tube past location could beryllium an further surcharge connected exports.

Any blockade of nan Strait of Hormuz would lead to a crisp emergence successful world crude lipid prices. Low crude lipid prices successful caller months person been a alleviation to India pinch inflationary pressures nether control, a prolonged summation could instrumentality ostentation successful not only conscionable crude lipid but besides different commodities. For now, officials underline that location is capable abstraction to sorb immoderate crisp emergence successful world crude lipid prices.  

India is nan 3rd largest importer of crude lipid globally and imports 80% of its lipid requirements. It does not import crude lipid straight from Iran owed to nan US sanctions.

“India remains susceptible to a surge successful lipid prices, though nan capacity to fiscally carnivore nan higher prices is substantially higher today. Even then, higher lipid prices for longer will yet seep into ostentation and inflationary expectations, besides having a base connected nan monetary policy,” said a study by Emkay Global Financial Services.

Published on: Jun 17, 2025 5:33 PM IST