Middle East Tension: India’s ₹9 Lakh Crore Import Crisis

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Rising tension in the Middle East can become a cause for concern for India as well. If the situation worsens, there is a risk of a direct impact on the country’s supply system. The supply of many important products like petrol-diesel, gas, fertilizers, plastics, and diamonds could be affected.

According to reports, India imports goods worth about 98 billion dollars, or more than 9 lakh crore rupees, from this region every year. In such a situation, if there is any disruption in the supply coming from there, its impact can be seen not only on industries but also on the daily needs of common people.

Biggest Threat Looms Over Energy Supply

India is largely dependent on the Middle East for its energy needs. The country imports a major portion of its oil and gas requirements from this region. According to the report, India buys petroleum worth about 70 billion dollars from the Middle East, which includes over 50 billion dollars of crude oil.

In such a scenario, if supplies from this region are affected, petrol and diesel prices in India could increase. This could impact not only common people but also the transport, logistics, and agricultural sectors. The cost of farming could also rise due to increased prices of diesel pumps and tractors used in fields.

Increased Risk to LNG and Gas Supply

India also fulfills a large part of its gas requirements from the Middle East. According to the report, about 68 percent of the country’s LNG supply comes from this region. Recently, a Qatari company halted some gas supplies due to difficulties in the sea route, further escalating concerns about the situation.

Impact on Cooking Gas Also Possible

LPG coming from the Middle East accounts for about 47 percent of India’s total imports. Therefore, if supplies are disrupted for a long time, the availability and prices of cooking gas used in millions of Indian homes could be affected.

Impact on Agriculture and Fertilizer Supply Possible

India is also largely dependent on the Middle East to meet its fertilizer needs. In 2025, India imported fertilizers worth approximately 3.7 billion dollars from this region. If supplies from here are affected, farmers might have to pay more for fertilizers. Additionally, the government’s subsidy burden is also likely to increase, which could further impact food prices.

Diamond Industry Could Also Be Affected

India’s diamond industry also relies on trade connected to the Middle East. In 2025, India imported rough diamonds worth approximately 6.8 billion dollars from this region. If their supply is disrupted, the diamond industry operating in cities like Surat could see an impact.

What is the Cause for Concern

In recent days, reports of missile and drone attacks have emerged on several energy and logistics facilities in Saudi Arabia, Qatar, UAE, and Oman. These incidents have increased the fear of disruption in oil and gas supplies, escalating concerns for India as well as the global market.

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