
Beyond the barrel: How the US-Iran war is affecting India
India Today
With supply chains under strain, sectors from agriculture to manufacturing will feel pressure if the war is prolonged.
The war in West Asia has entered its 18th day. While energy remains the immediate concern for India, the ripples of supply chain disruptions, especially at the Strait of Hormuz, are being felt across sectors.
Agriculture will feel the impact. India depends on West Asian countries for about a third of its chemical fertiliser demand. Any disruption in supplies or shipping routes will tighten availability and raise import costs, increasing the government’s subsidy burden. An increase in fertiliser prices could also force farmers to reduce use, which could lead to lower yields.
Aluminium and copper are key industrial metals used in construction, power, electronics, and automobiles. They are used in wiring, machinery, and infrastructure, making them critical for both industrial activity and infrastructure development. Between April 2025 and January 2026, India imported about $3.4 billion worth of aluminium, copper, and their products from West Asia, amounting to approximately 18 per cent of its total imports in this category.
India also imports about 18 per cent of its raw plastic demand from this region. In the first three quarters of FY2026, India imported $2.4 billion worth of raw plastic from West Asian nations.
Raw plastic is widely used in packaging (which supports the food and FMCG industries), as well as in electronics, household items, and auto parts.
While India’s gems and jewellery market may not feel the heat immediately, it can face serious consequences. A significant amount of India’s gold imports and rough diamonds comes through West Asian countries before reaching Indian markets and processing centres like Surat.

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The government told the Bombay High Court that the situation remains dynamic due to international developments, and emphasised that it may not be appropriate to deliberate such matters within court proceedings. He assured the bench that the government is taking all necessary remedial measures to ensure that global disruptions do not adversely impact domestic supply of LPG.










