![\"Beyond](\"https:\/\/static.toiimg.com\/thumb\/msid-129098899,imgsize-143084,width-400,resizemode-4\/india-imports-from-middle-east.jpg\" "\\"Petroleum")
<\/div>\n<\/div>\n<\/div>\nBeyond oil, the Middle East crisis has other implications for the Indian economy<\/a>, especially if the US-Israel-Iran war continues for a long duration leading to major supply disruptions. In recent days, a series of missile and drone attacks have struck multiple energy and logistics installations across the Gulf region. These incidents have heightened concerns that shipments of oil and gas moving through the Strait of Hormuz – a vital artery for global energy trade – could face disruption.Between March 1 and March 3, important facilities in Saudi Arabia, Qatar, the United Arab Emirates and Oman came under attack. The situation has fueled concerns that the conflict could trigger a wider shock to global energy supplies.But beyond oil, it\u2019s important to note that West Asia plays an important role in supplying India with essential commodities. In 2025, India\u2019s imports from the region of approximately $98.7 billion included critical resources such as energy, fertilisers and industrial inputs.<\/p>\n Petroleum is the most immediate area of exposure. In 2025, India sourced roughly $70 billion crude oil and petroleum products from West Asia.\u201cCrude oil feeds India\u2019s refineries, which produce petrol, diesel, aviation fuel and petrochemical feedstocks used across the economy. India has about 30 days of stocks, any prolonged disruption in shipments could quickly push up fuel prices, raising transport and logistics costs and feeding into inflation. Farmers would also feel the pressure through higher diesel prices for irrigation pumps and tractors,\u201d says Ajay Srivastava, founder of Global Trade Research Initiative (GTRI).Also Read | Russian crude to rescue! Ships carrying Russia\u2019s oil head to India amid Middle East supply shock: Report<\/a><\/p>\n Supplies of natural gas are also exposed to potential disruptions. In 2025, India sourced liquefied natural gas or LNG worth $9.2 billion from West Asia, which is around 68.4% of its total LNG imports. LNG is also a key input for fertilizer manufacturing units, gas-fired power plants and city gas distribution systems that provide compressed natural gas (CNG) for vehicles and piped gas for household cooking.Signs of this vulnerability have already emerged. Qatar\u2019s Petronet LNG halted LNG deliveries to GAIL starting March 4, 2026 due to restrictions affecting vessel movement.<\/p>\n Liquefied petroleum gas (LPG) imports from West Asia were $13.9 billion in 2025, making up 46.9 % of India\u2019s total LPG purchases. LPG continues to serve as the main cooking fuel for millions of households. With reserves covering only about two weeks of consumption, any interruption in supply could quickly impact the availability of cooking fuel.<\/p>\n India\u2019s agricultural sector could also feel the impact through fertiliser imports, says GTRI in its report. In 2025, fertiliser purchases from West Asia stood at $3.7 billion. Any disruption in supplies during the crop cycle could lead to reduced fertilizer availability, increase the government\u2019s subsidy burden and eventually push up food prices.Also Read | India\u2019s energy security exposure to Middle East: How much oil, LPG, LNG reserves do we have?<\/a><\/p>\n India\u2019s diamond export sector is also closely tied to supplies from the Gulf. Diamonds of around $6.8 billion were imported from the Middle East in 2025, which is 40.6% of its total imports of these stones. Rough diamonds are in turn processed in India\u2019s cutting and polishing centres, especially in Gujarat\u2019s Surat, before being exported to international markets as polished gems. Any interruption in the flow of raw diamonds could slow manufacturing activity and have an impact on employment within the jewellery industry.<\/p>\n A number of industrial inputs sourced from the Gulf are also crucial for India\u2019s manufacturing sector. India bought polyethylene polymers of around $1.2 billion from West Asia in 2025. Polyethylene is widely used in products such as packaging materials, plastic piping, storage containers, consumer goods and agricultural films used in irrigation systems. <\/p>\n India\u2019s construction industry also relies heavily on mineral imports from the region. In 2025, the country imported limestone worth $483 million from West Asia. Limestone is a key ingredient in cement production, and hence any shortage could raise the cost of cement, thereby possibly slowing infrastructure development.<\/p>\n Supply links with West Asia also extend to the metals sector. India imported direct reduced iron of around $190 million from the Middle East region in 2025. Additionally, the country sourced copper wire worth $869 million from West Asia. Copper wire is widely used in power transmission networks, electrical machinery and renewable energy infrastructure.As GTRI notes: Together, these figures highlight how closely India\u2019s economy is tied to West Asian supply chains. <\/span>\u201cIf disruptions to shipping through the Strait of Hormuz continue beyond a week, the effects could quickly spread from energy markets to fertiliser supplies, manufacturing inputs, construction materials and export industries such as diamonds. What begins as a regional conflict could rapidly evolve into a broader supply shock for the Indian economy,\u201d the GTRI report concludes.<\/span><\/div>\n\n1. Oil: Immediate risk<\/h2>\n<\/p>\n
2. LNG Supplies<\/h2>\n<\/p>\n
3. Risks to LPG<\/h2>\n<\/p>\n
4. Exposure in Fertiliser Supplies<\/h2>\n<\/p>\n
5. Diamond Trade and Exports<\/h2>\n<\/p>\n
6. Industrial Raw Material Supplies<\/h2>\n<\/p>\n
7. Construction-Related Materials<\/h2>\n<\/p>\n
8. Metals Supply Chains<\/h2>\n<\/p>\n