The Federation of Indian Export Organizations (FIEO) warns that the conflict will disrupt global trade and the economy. Iran’s influence on the oil market has strengthened, resulting in a 4% increase in crude oil prices per barrel. A further escalation could disrupt the crude oil supply, impacting oil-importing countries.
The Strait of Hormuz, a vital shipping route for oil, faces potential disruption if the Middle East crisis intensifies. Israel is India’s second-largest trading partner in Asia, and India’s exports to Israel, Jordan, and Lebanon have declined by 63.5%, 38.5%, and 6.8%, respectively.
These countries import basmati rice, handloom yarn, readymade garments, crystal and gold jewelry, cotton yarn, and cotton fabrics from India.
