The Iran-Israel war is heating up, and other countries are also jumping in. So, what does this mean for the Indian economy? Let's break down our trade with Iran and see how this conflict could hit our wallets.
India imports a bunch of things from Iran. This includes dry fruits like almonds, pistachios, and walnuts. We also get organic and inorganic chemicals, apples, dates, saffron, glassware, and some minerals from there.
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Items India Exports to Iran
It's a two-way street. India exports a lot to Iran too. Basmati rice is a big one, making up over 60% of our total exports to them. We also sell tea, sugar, soybeans, medical equipment, industrial spare parts, and electronic gadgets.
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Will Prices Rise?
Crude Oil: Iran doesn't sell oil directly to us anymore, but this war will spike international oil prices. That means petrol and diesel rates in India will likely go up. This will make transport costlier, and prices of other goods will also rise. Sea Route Problems: The conflict could block ship movement through the Strait of Hormuz. If that happens, shipping and insurance costs will shoot through the roof.
Dry Fruit Shortage: If the supply of dry fruits from Iran stops, their prices will definitely increase in our markets. If this war continues for long, it's almost certain to put a lot of pressure on India's inflation.
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