If the conflict escalates, oil supply might be disrupted.
India imports a lot of its oil, so prices could rise.
Impact on India:
Higher oil prices increase the cost of fuel and transportation.
This leads to higher inflation (price rise for everyday goods).
India’s import bill grows, worsening the trade deficit.
The Indian Rupee may weaken against other currencies.
2. Inflation
Rising fuel costs make products and services more expensive.
This pushes overall inflation upward, affecting household budgets.
3. GDP Growth
Companies spend more on energy, reducing funds for expansion.
Consumers spend more on essentials like fuel, less on other goods.
Prolonged high oil prices may slow India’s economic growth slightly.
4. Stock Market
Increased geopolitical tension often makes markets volatile (prices swing up and down).
Foreign investors might reduce investments or delay decisions.
Sectors like airlines, paints, chemicals (which use a lot of oil) may face pressure.
Energy and defense companies might see gains due to higher demand.
Final Note: Currently, the conflict is limited, and India’s impact is small. But if it escalates to a wider war involving more countries, the economic effects could be stronger.
Rajasekar A California-based travel writer, lover of food, oceans, and nature.
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