INDIAN INDUSTRY STILL OUT OF CROSSHAIRS, DIAMOND, CRUDE OIL TRADE A LINGERING WORRY

The ongoing conflict in the Middle East, confined mainly to the Gaza region now, has caused only negligible disruption in India's trade so far.

- NIVEDITA MUKHERJEE

Some sectors such as fertilizers and diamonds both cut and polished - may see a slight, but manageable, impact, while for most others impact will be insignificant, finds a recent Crisil Ratings study.

India's trade with Israel is relatively low, accounting for 1.9 per cent of total exports and 0.3 per cent of total imports last fiscal. The merchandise exports mainly comprise polished diamonds and petroleum products, including refined hydrocarbons, while imports largely comprise industrial equipment, fertilizers, rough diamonds, and precious stones.

Israel is a major global producer of muriate of potash (MOP) and among the top three countries that India imports from, accounting for 25 per cent of all MoP imports last fiscal. However, the share of MoP (as final product or as an ingredient in other fertilisers) remains low at 10 per cent of domestic fertiliser consumption. Additionally, India's ability to source from other countries lowers the supply risk.