Explainer: How West Asia conflict can impact Indian economy
A new conflict in West Asia (sparked by U.S.-Israel strikes on Iran) has put India's energy and economy at serious risk.
Oil infrastructure has been hit, and there are real fears the Strait of Hormuz (a key route for global oil) could close.
The Reserve Bank of India is warning about rising prices, and things could get rough for the Indian economy.
Why the Gulf is important for India
India imports the majority of its LNG from West Asia (about 68.4%) and a significant portion of its crude oil (roughly 40-45% from UAE, Saudi Arabia, Kuwait and Iraq), so any trouble there hits India hard: fuel prices go up, growth slows down, and inflation rises.
Plus, millions of Indians work in Gulf countries; if trade or remittances drop due to the war, jobs and money sent home take a hit.
Even essentials like fertilizers and steel imports from this region are at risk.
With all this uncertainty, India is already looking to buy more Russian oil to soften the blow.