West Asia Conflict | Economic Impact India's Three-Pillar Exposure to West Asia Energy, trade, and remittances anchor India's ties with West Asia — all three are now under stress from the ongoing conflict. As the world’s third-largest importer of crude oil, India’s external balance remains sensitive to changes in energy prices. When oil prices spike, every $10 rise in crude oil prices adds an estimated $12-18 billion to India’s import bill, according to a report by DSP Mutual Fund. The 1991 balance-of-payments crisis, which triggered major economic reform, was partly driven by rising oil prices during the Gulf War. In the context of the Iran war, analyse the strategic importance of the Strait of Hormuz for India’s energy security.

Source: Indian Express March 25, 2026 18:07 UTC