How Iran-Israel conflict is impacting India's economy
Tensions between Iran and the US-Israel bloc are starting to hit India's economy.
Gaurav Vasu, CEO of UnearthInsight, says rising oil prices—now up to $73 a barrel—could drive inflation higher and make India's current account deficit worse.
The big worry: both electronics exports and IT sector growth are taking a hit.
Electronics exports at risk
India's electronics shipments to Gulf countries, especially the UAE, are now at risk.
Out of $4.5 billion in exports, smartphones alone made up $3.1 billion in April-December 2025 (FY26).
But with freight costs and insurance rising to multi-year highs thanks to the conflict, sending gadgets abroad is getting trickier—and more expensive.
IT sector growth to slow down
India's top tech firms like TCS, Infosys, Wipro, and HCLTech may need to slow expansion as Gulf clients cut back on tech spending.
Gaurav Vasu, CEO of UnearthInsight, now pegs FY27 IT growth at just 2-3% (down from 4-5%), showing how global tensions can quickly ripple into jobs and opportunities back home.