Impact of the Iran–Israel Conflict on the Indian Economy: A Commerce Perspective

Abstract

Global economic stability is greatly impacted by geopolitical conflicts, especially for developing nations that rely largely on foreign trade and energy imports. The confrontation between Iran and Israel has caused trade lines to be disrupted, oil markets to become more volatile, and financial systems to become more unpredictable. Such geopolitical tensions pose serious economic dangers to India, one of the biggest importers of petroleum and a significant trading partner with West Asian states. This study looks at how the Iran-Israel war has affected the Indian economy from a business standpoint, concentrating on supply chains, trade, energy security, inflation, and financial markets. The study makes use of secondary data from international organizations, financial institutions, and government publications. The results indicate that the main channels are inflationary pressures, currency depreciation, rising oil prices, and interruptions in marine trade routes. The results indicate that the main ways that the conflict impacts the Indian economy are through rising oil prices, disruptions in marine trade routes, currency depreciation, and inflationary pressures. The study comes to the conclusion that increasing trade resilience, fortifying strategic reserves, and diversifying energy imports are crucial tactics to reduce geopolitical risks.