If a war breaks out between Iran and Israel, it could have a massive impact on the global market and India.
Tension between these two countries has been going on for years, but the recent situation is worsening.
In such a situation, if this tension turns into war, the prices of many commodities may increase across the world. Let us know which items can become expensive:
1. Crude oil and petroleum products
Iran is one of the world’s largest crude oil producers and is located in sensitive areas of West Asia. The conflict in this region will have a direct impact on global oil supply. Instability in international oil markets will increase crude oil prices, making petrol, diesel and other petroleum products expensive. This will have a particularly big impact on India, which is largely import dependent for its oil needs. As a result, transportation and production costs will increase and will also increase prices of everyday commodities.
2. Gold and Silver
In times of global instability like war, investors often turn to gold and silver as safe investments. Due to this their demand increases and prices can skyrocket. Gold consumption in India is already very high, and if its prices rise it will have a deep impact on the jewelery industry and general consumers.
3. Food items
The conflict between Iran and Israel could also impact global shipping routes, especially the Strait of Hormuz. It is an important route through which large quantities of food and agricultural products are traded. If shipping in the region is disrupted, global supply chains will be disrupted and prices for food items, such as wheat, sugar and other agricultural products, could rise. This inflation in India can have a direct impact on food items.
4. Natural gas and electricity
Iran is also one of the largest producers of natural gas. In the event of war, Iran’s gas export capacity could be affected, causing an energy crisis in Europe and Asia. Natural gas prices may also increase in India, which may have a direct impact on domestic gas cylinders and electricity production.
5. Industrial metals and chemicals
Iran’s chemical and metals industry also plays an important role on the global stage. If there is any instability in this sector, the prices of raw materials associated with these industries may increase. Due to this, the prices of steel, aluminum and other industrial metals may also be affected, which will adversely affect the Indian manufacturing and production sectors.
6. Pharmaceutical Industry
The war between Iran and Israel may also have an indirect impact on the Indian pharmaceutical industry. India imports a large portion of the raw materials for medicines from abroad, and any disruption in West Asia will impact the supply chain. Due to this, there is a possibility of increase in the prices of medicines, which will have a direct impact on the general public.
7. Fertilizer
Iran is also a major exporter of urea and other fertilizers. If the supply of these products is disrupted due to war, the global fertilizer market will be affected. In an agricultural country like India, the increase in the prices of fertilizers will have a direct impact on the cost of agricultural production, which can increase the burden on farmers and ultimately the prices of food items will also increase.
What does India import the most from Iran?
Trade relations between India and Iran are long-standing, and India is dependent on Iran for many vital commodities.
1. Crude Oil
Crude oil accounts for the largest share in India’s imports from Iran. Iran is a major oil producing country, and India has long been importing large quantities of crude oil from Iran to meet its energy needs. Although this trade has declined somewhat due to international sanctions and geopolitical issues, crude oil is still a major import item.
2. Fertilizers
India imports large quantities of fertilizers, especially urea, from Iran. India is an agricultural country and to meet the fertilizer demand of farmers, imports from countries like Iran are necessary. Iran’s fertilizer industry is important for India’s agricultural productivity.
3. Chemicals
India also imports many types of industrial chemicals from Iran. These chemicals are used in Indian industries to manufacture various products, such as petrochemicals, plastics, and in other industrial processes.
4. Dry Fruits
India imports large quantities of dry fruits, such as pistachios, dates, and almonds from Iran. Iranian dry fruits are in great demand in the Indian market, especially during festivals and special occasions.
5. Natural Gas
Although the trade of natural gas between India and Iran is not as large as that of oil, Iran has still been a potential supplier for gas exports to India. India also imports LNG (Liquefied Natural Gas) from Iran.
6. Petrochemical Products
India also imports petrochemical products from Iran, which are used in various industries. These include plastics, rubber, and other chemical products that are vital to the Indian manufacturing and production process.
What does India import the most from Israel?
Relations between India and Israel are strong not only at the political or diplomatic level, but also at the business level. India imports many important commodities from Israel, which are important for various sectors of the Indian economy. Let us know, what India imports the most from Israel:
1. Defense Equipment
Defense cooperation between India and Israel is very deep. India imports state-of-the-art defense equipment, weapon systems, missile technology and drones from Israel. The technical expertise of Israel’s defense industry is playing a vital role in the modernization of India’s defense sector. India imports technologies like anti-tank guided missiles, radar systems and UAVs (Unmanned Aerial Vehicles) from Israel.
2. Advanced Agricultural Technology
Given Israel’s expertise in addressing climate and agricultural challenges, India imports modern irrigation technologies, such as drip irrigation and micro irrigation systems, from there. These technologies are being used in Indian agriculture to save water and increase productivity.
3. Chemicals and Fertilizers
India also imports special types of chemicals and fertilizers from Israel. Israeli chemical companies provide high quality chemicals and fertilizers to Indian industries, which are important in agriculture and other production sectors.
4. Diamonds
Israel is a major diamond exporter and India, particularly Surat in Gujarat, is the world’s largest diamond processing centre. Diamonds are imported from Israel and then cut and polished in India. This trade creates strong economic ties between India and Israel.
5. Electronics and Cybersecurity
Israel is known for its advanced technology and expertise in cyber security. India also imports electronics and cyber security equipment from Israel, which help in protecting various industries and government institutions. Cyber security technology imported from Israel is important for the Indian IT and defense sector.
6. Medical and Healthcare Products
Israel’s medical and health sector is also quite advanced. India imports many medical equipment from Israel, especially cutting-edge medical technology and devices. This import contributes to the improvement of Indian health services.
A war between Iran and Israel would not only be devastating for West Asia, but its impact would also be felt globally and especially in India. Oil, gold, gas, food items and many other industries may be affected by this, resulting in the possibility of inflation increasing. In such a situation, India will have to focus on long-term strategies to maintain its economic plans and supply chain stability.
The post If there is a war between Israel and Iran, then these goods may become expensive all over the world including India; Understand the direct connection… appeared first on .