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India.com
3 days ago
- Business
- India.com
Iran or Israel? Which country is more important for India, why is New Delhi in a dilemma?
Iran or Israel? Which country is more important for India, why is New Delhi in a dilemma? New Delhi: The conflict between Israel and Iran is escalating every day. This has increased India's tension for energy security, trade routes and commercial relations. In view of this, Global Trade Research Initiative (GTRI) has recently reached out to the Indian government and advised it to review energy risk scenarios, diversify crude oil sources and ensure strategic reserves of oil. The report urges the Indian government to ensure that the country's strategic oil reserves are sufficient to deal with any potential crisis. As per a report by GTRI, India, which is not directly involved in Iran-Israel conflict, cannot remain unaffected. The report also recommends promoting diplomatic efforts in the Arabian Sea. India's Trade With Iran, Israel GTRI has raised an alarm that rising tensions in West Asia are posing a threat to India's energy security, trade routes and commercial relations. The report also highlights that growing Israel-Iran conflict could have a major impact on the economy of India. It is to be noted that, New Delhi has trade relations with both the countries. In FY- 2024-2025, India exported goods worth USD1.24 billion to Iran and imported USD441.9 billion goods. Trade with Israel is even bigger as It includes exports of USD2.15 billion and imports of SD1.61 billion. India's foreign policy has always been not to be a part of any one group (non-alignment). It wants to maintain its independent relations with both the countries. India's Biggest Concern As a country with the largest population, India's biggest concern is energy. About two-thirds of crude oil and half of its LNG imports pass through Strait of Hormuz, a narrow waterway that is now threatened by Iran. The Strait of Hormuz handles about a fifth of the global oil trade. Notably, India imports over 80 percent of its energy needs. In such a situation, any kind of disruption or halt at the Strait of Hormuz could lead to increase in oil prices, shipping costs and insurance premiums. GTRI said that the situation could increase the inflation rate, weaken rupee and pose challenges to the government's financial planning. A significant portion (approx 30%) of India's exports to Europe, North Africa, and the US East Coast traverse the Bab-el-Mandeb Strait. Disruptions to this route could add up to two weeks to transit times, necessitating a longer journey around the Cape of Good Hope and leading to substantially higher freight costs. This will negatively impact Indian exports, including engineering goods, textiles, and chemicals, and increase the price of essential imports. What does India need to do? GTRI reports rising casualties in an ongoing conflict, further exacerbated by the breakdown of US-Iran nuclear talks. This situation is impacting regional financial markets. GTRI advises India to proactively address potential energy risks by diversifying its oil sources and verifying the sufficiency of its strategic reserves. A report emphasises the necessity of enhanced military readiness in the Arabian Sea, particularly near vital shipping routes. Simultaneously, it recommends India leverage international platforms like the G20 and the UN to advocate for peace, conflict resolution, and the safeguarding of global trade.
India.com
4 days ago
- Business
- India.com
Adani's port, India's peril? New fronts in the Mideast conflict
Adani's port, India's peril? New fronts in the Mideast conflict As the Israel-Iran conflict worsens, India faces a growing threat of indirect economic damage. The country's energy security, trade routes, and important business interests are becoming more uncertain. In response to the rising tensions, the government needs to quickly assess the risks to its energy supply, explore new sources for crude oil, and make sure the country's emergency fuel reserves are strong enough, according to a statement from the think tank GTRI on Sunday. The Global Trade Research Initiative (GTRI) has warned that the ongoing war is putting India at greater risk of indirect economic damage. The country's energy supply, shipping routes, and major business interests are becoming more uncertain as the conflict continues. According to GTRI Founder Ajay Srivastava, the growing violence and increasing tension in the region are directly affecting India's important economic and strategic ties with West Asia. He explained that India trades a lot with both countries involved in the conflict, which puts its trade and economic interests at risk, reported Hindu Business Line . In 2024-25, India exported goods worth $1.24 billion to Iran and imported items worth $441.9 million from the country. Trade with Israel was even larger, with $2.15 billion in exports and $1.61 billion in imports. However, what matters even more than trade with these two countries is India's heavy dependence on the region for energy. Almost two-thirds of India's crude oil and around half of its liquefied natural gas (LNG) imports travel through the Strait of Hormuz—a route that Iran has now threatened to block. This narrow waterway, just 21 miles wide at its tightest point, is crucial because it carries nearly 20% of the world's oil supply. For India, which imports more than 80% of its energy needs, the Strait of Hormuz is vital. The situation became more serious on June 15, when Iran launched missiles at Israel's Haifa port. This port is very important as it handles over 30% of Israel's imports. What makes it more concerning for India is that Adani Ports, an Indian company, owns 70% of this port, explained Srivastava. According to Srivastava, early reports suggest that the missile attack damaged parts of the port and nearby oil refineries. This has raised concerns that shipping and goods movement could be disrupted, and that the conflict might start affecting Indian business interests in the area. At the same time, Israel's airstrikes on June 14-15 targeted Houthi military leaders in Yemen, further increasing tensions in the Red Sea. This is worrying because Houthi forces have already attacked cargo ships in the region, putting international trade at risk. For India, this is a major concern. Almost 30% of India's exports heading west—to places like Europe, North Africa, and the eastern coast of the United States—pass through the Bab el-Mandeb Strait, Srivastava pointed out. This narrow waterway lies between Yemen and the Horn of Africa and connects the Red Sea to the Arabian Sea. It's an important route for global shipping, especially for countries like India. With the area now under threat due to rising tensions and attacks, there is a real risk that Indian exports could face delays, higher transport costs, or even disruptions. He explained that if ships are forced to avoid the Red Sea and take the longer route around the Cape of Good Hope in Africa, delivery times could increase by up to two weeks. This longer journey would also make shipping much more expensive. As a result, India's exports—especially items like engineering products, textiles, and chemicals—could face serious delays and higher costs. At the same time, it would also make some imported goods more expensive for India, since the cost of bringing them in would go up. Although India is not directly involved in the conflict, it cannot afford to stay relaxed, he warned. The government needs to quickly assess the risks to its energy supply, look for more diverse sources of crude oil, and make sure the country has enough fuel stored in its emergency reserves. ( Girish Linganna is an award-winning science communicator and a Defence, Aerospace & Geopolitical Analyst. He is the Director of ADD Engineering Components India Pvt. Ltd., a subsidiary of ADD Engineering GmbH, Germany. Contact: girishlinganna@ )
India Gazette
5 days ago
- Business
- India Gazette
Rising Israel-Iran conflict, India faces growing threats to its energy security, trade routes, and commercial ties: GTRI
New Delhi [India], June 16 (ANI): The Indian Government should review energy risk scenarios, diversify crude sourcing and ensure strategic reserves of oil amid the ongoing conflict between Israel and Iran, according to a report by GTRI. The Global Trade Research Initiative (GTRI) has warned that India, though not directly involved in the Iran-Israel conflict, cannot afford to remain complacent. The report urged the Indian government to ensure that the country's strategic oil reserves are sufficient to handle any possible crisis. It stated, 'India, though not a party to the conflict, cannot afford complacency. The government must urgently review energy risk scenarios, diversify crude sourcing, and ensure strategic reserves are sufficient'. It further highlighted the need for stronger military preparedness in the Arabian Sea, especially around vital sea lanes and choke points. Diplomatically, the report recommends that India should use international platforms such as the G20 and the United Nations to push for peace, de-escalation, and protection of global trade routes. As tensions in West Asia rise, India faces growing threats to its energy security, trade routes, and commercial ties. The report states that the intensifying Israel-Iran conflict could have serious consequences for India's economy. India has major trade exposure with both nations. In FY2025, India exported goods worth USD 1.24 billion to Iran and imported goods worth USD 441.9 million. Trade with Israel is even larger, with USD 2.15 billion in exports and USD 1.61 billion in imports. However, the bigger concern of India right now is energy. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, a narrow waterway now threatened by Iran. The Strait of Hormuz, just 21 miles wide at its narrowest point, handles nearly one-fifth of global oil trade. Since India depends on imports for over 80 per cent of its energy needs, any disruption here would lead to a sharp rise in oil prices, shipping costs, and insurance premiums. GTRI stated that this could fuel inflation, weaken the rupee, and create challenges for the government's financial planning. In addition, the report mentioned that nearly 30 per cent of India's westbound exports to Europe, North Africa, and the U.S. East Coast pass through the Bab el-Mandeb Strait. This route is now also at risk. If shipping is forced to take the longer route around the Cape of Good Hope, transit times could go up by two weeks, and freight costs would rise significantly. This would affect Indian exports such as engineering goods, textiles, and chemicals, and raise the cost of important imports. The recent conflict arose when Israel launched 'Operation Rising Lion' on June 13. Over 200 aircraft and Mossad-led drones attacked Iran's military and nuclear sites. Iran also launched more than 150 ballistic missiles and drone swarms on Israeli cities like Tel Aviv and Jerusalem. Casualties are rising, GTRI stated that now, with U.S.-Iran nuclear talks cancelled, diplomatic efforts have broken down. Regional financial markets are also under pressure. (ANI)
Hindustan Times
5 days ago
- Business
- Hindustan Times
'India cannot afford complacency' in Iran-Israel conflict, warns GTRI
The Indian Government should review energy risk scenarios, diversify crude sourcing and ensure strategic reserves of oil amid the ongoing conflict between Israel and Iran, according to a report by GTRI. The Global Trade Research Initiative (GTRI) has warned that India, though not directly involved in the Iran-Israel conflict, cannot afford to remain complacent. The report urged the Indian government to ensure that the country's strategic oil reserves are sufficient to handle any possible crisis. It stated, "India, though not a party to the conflict, cannot afford complacency. The government must urgently review energy risk scenarios, diversify crude sourcing, and ensure strategic reserves are sufficient". It further highlighted the need for stronger military preparedness in the Arabian Sea, especially around vital sea lanes and choke points. Diplomatically, the report recommends that India should use international platforms such as the G20 and the United Nations to push for peace, de-escalation, and protection of global trade routes. As tensions in West Asia rise, India faces growing threats to its energy security, trade routes, and commercial ties. The report states that the intensifying Israel-Iran conflict could have serious consequences for India's economy. India has major trade exposure with both nations. In FY2025, India exported goods worth USD 1.24 billion to Iran and imported goods worth USD 441.9 million. Trade with Israel is even larger, with USD 2.15 billion in exports and USD 1.61 billion in imports. However, the bigger concern of India right now is energy. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, a narrow waterway now threatened by Iran. The Strait of Hormuz, just 21 miles wide at its narrowest point, handles nearly one-fifth of global oil trade. Since India depends on imports for over 80 per cent of its energy needs, any disruption here would lead to a sharp rise in oil prices, shipping costs, and insurance premiums. GTRI stated that this could fuel inflation, weaken the rupee, and create challenges for the government's financial planning. In addition, the report mentioned that nearly 30 per cent of India's westbound exports to Europe, North Africa, and the U.S. East Coast pass through the Bab el-Mandeb Strait. This route is now also at risk. If shipping is forced to take the longer route around the Cape of Good Hope, transit times could go up by two weeks, and freight costs would rise significantly. This would affect Indian exports such as engineering goods, textiles, and chemicals, and raise the cost of important imports. The recent conflict arose when Israel launched "Operation Rising Lion" on June 13. Over 200 aircraft and Mossad-led drones attacked Iran's military and nuclear sites. Iran also launched more than 150 ballistic missiles and drone swarms on Israeli cities like Tel Aviv and Jerusalem. Casualties are rising, GTRI stated that now, with U.S.-Iran nuclear talks cancelled, diplomatic efforts have broken down. Regional financial markets are also under pressure. (ANI)
Time of India
5 days ago
- Business
- Time of India
Rising Israel-Iran conflict, India faces growing threats to its energy security, trade routes, and commercial ties: GTRI
The Indian Government should review energy risk scenarios, diversify crude sourcing and ensure strategic reserves of oil amid the ongoing conflict between Israel and Iran, according to a report by GTRI. The Global Trade Research Initiative (GTRI) has warned that India, though not directly involved in the Iran-Israel conflict, cannot afford to remain complacent. The report urged the Indian government to ensure that the country's strategic oil reserves are sufficient to handle any possible crisis. It stated, "India, though not a party to the conflict, cannot afford complacency. The government must urgently review energy risk scenarios, diversify crude sourcing, and ensure strategic reserves are sufficient". It further highlighted the need for stronger military preparedness in the Arabian Sea, especially around vital sea lanes and choke points. Live Events Diplomatically, the report recommends that India should use international platforms such as the G20 and the United Nations to push for peace, de-escalation, and protection of global trade routes. As tensions in West Asia rise, India faces growing threats to its energy security, trade routes, and commercial ties. The report states that the intensifying Israel-Iran conflict could have serious consequences for India's economy. India has major trade exposure with both nations. In FY2025, India exported goods worth USD 1.24 billion to Iran and imported goods worth USD 441.9 million. Trade with Israel is even larger, with USD 2.15 billion in exports and USD 1.61 billion in imports. However, the bigger concern of India right now is energy. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz , a narrow waterway now threatened by Iran. The Strait of Hormuz, just 21 miles wide at its narrowest point, handles nearly one-fifth of global oil trade. Since India depends on imports for over 80 per cent of its energy needs, any disruption here would lead to a sharp rise in oil prices, shipping costs, and insurance premiums. GTRI stated that this could fuel inflation, weaken the rupee, and create challenges for the government's financial planning. In addition, the report mentioned that nearly 30 per cent of India's westbound exports to Europe, North Africa, and the U.S. East Coast pass through the Bab el-Mandeb Strait. This route is now also at risk. If shipping is forced to take the longer route around the Cape of Good Hope, transit times could go up by two weeks, and freight costs would rise significantly. This would affect Indian exports such as engineering goods, textiles, and chemicals, and raise the cost of important imports. The recent conflict arose when Israel launched "Operation Rising Lion" on June 13. Over 200 aircraft and Mossad-led drones attacked Iran's military and nuclear sites. Iran also launched more than 150 ballistic missiles and drone swarms on Israeli cities like Tel Aviv and Jerusalem. Casualties are rising, GTRI stated that now, with U.S.-Iran nuclear talks cancelled, diplomatic efforts have broken down. Regional financial markets are also under pressure. Economic Times WhatsApp channel )
