West Asia crisis: India braces for ripple effects

It could affect exports such as basmati rice, fertilisers and diamonds (both cut and polished), says Crisil report

- Rakesh Kumar @ New Delhi

The ongoing conflict between Israel and Iran, if further escalated, could significantly impact not only India's oil sector but also broader trade with both nations.

While India's direct trade with Israel and Iran is relatively small—accounting for less than 1% of its total trade in the last fiscal year—some key sectors may be impacted. It could particularly affect exports such as basmati rice, fertilisers and diamonds (both cut and polished), says a report by rating agency Crisil.

The military escalation between the two countries has already contributed to volatility in global crude oil markets. If crude oil prices remain elevated over a longer period, India Inc.'s profitability may take a hit, says Crisil.