India cannot ignore the ongoing fight between Israel and Iran. This conflict may affect India in many ways especially by increasing fuel prices, affecting trade routes, and raising household expenses.
India’s Balancing Act in West Asia
India has always tried to keep good relations with both Iran and Israel.
Iran is important to India because of old cultural ties, the Chabahar Port, and its location near Central Asia.
Israel helps India in defense, intelligence, and fighting terrorism.
That’s why, when any conflict happens in West Asia, India avoids taking sides. It stays careful because there is a lot more at stake than just politics.
Why It Matters to India?
Around 9 million Indians live and work in Gulf countries like Saudi Arabia and UAE.
These workers send back over $100 billion every year to India. Their safety and the money they send are very important for India’s economy.
So India usually gives safe and balanced statements during such conflicts, just like many Gulf countries who are also careful with Iran.
India’s Energy Worries
India buys more than 80% of its crude oil from other countries.
A lot of this oil passes through the Strait of Hormuz a narrow water route between Iran and Oman. This route carries about 20% of the world’s oil and much of India’s gas (LNG).
If Iran blocks this route or attacks it, oil and gas prices could go up fast. That would make India’s energy bill much higher.
Even gas from Qatar, another big supplier to India, could be delayed due to shipping troubles.
Not Just Fuel, It Affects Everything.
When oil prices go up:
Petrol and diesel get expensive.
Transport becomes costlier.
Prices of food, medicine, and daily needs also increase.
Importers need more dollars to buy goods, and the value of the rupee goes down.
India’s current account deficit (difference between import and export money) may grow. Foreign investors may feel nervous and pull back.
Even if the government gives fuel subsidies to keep prices low, the hidden costs appear in other areas:
Truck transport becomes costly
Farmers pay more for fertilizers and gas
Small shops and businesses struggle due to higher input costs
Common people pay more for groceries, delivery, flights, paint, and taxes
Big Projects May Also Get Affected.
India had announced a major new project at the G20 Summit — the India-Middle East-Europe Economic Corridor.
It was supposed to connect India with Europe through the UAE, Saudi Arabia, and Israel, as a counter to China’s Belt and Road project.
But after the Hamas-Israel war in October 2023, it got delayed.
Now, with fresh tension between Israel and Iran, this project might be put on hold again.
What Can Happen If This Conflict Grows
Crude oil prices can go very high
Indian rupee can lose value
Inflation may rise
Big international projects may get delayed
Middle-class families may feel a money crunch.
This conflict may look far away, but its effect could reach Indian homes soon. So it is not just a global issue. It could hit your wallet too.
