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Gulf conflict could disrupt India's trade, energy supplies: ASSOCHAM

14 Mar '26

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Gulf conflict could disrupt India's trade, energy supplies: ASSOCHAM

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A prolonged Middle East conflict could push up global fuel prices, raise costs across manufacturing and logistics supply chains, disrupt global trade and affect India's energy supplies, ASSOCHAM has said.
India, which depends heavily on crude oil imports, may see its current account deficit widen and inflation rise if global oil prices surge, it said.
Energy-intensive industries could face challenges.

A prolonged conflict in the Middle East could push up global fuel prices, increase costs across manufacturing and logistics supply chains, disrupt global trade and affect India’s energy supplies, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Escalation could interfere with oil and gas shipments passing through the Strait of Hormuz, a critical maritime route, the chamber cautioned.

India, which depends heavily on crude oil imports, may see its current account deficit widen and inflation rise if global oil prices surge, the industry body said.

“Beyond goods trade, the Gulf is home to a large share of the Indian diaspora, who work in the construction, healthcare, hospitality and tourism industries,” chamber president N K Minda said, drawing attention to remittances from the region.

India imported goods worth about $98.7 billion from the region last year. These included energy, fertilisers and industrial inputs.

Energy-intensive industries could face challenges if disruptions continue, ASSOCHAM noted.

Container shipments and product deliveries across regions are also being delayed.

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