Srinagar, March 8: Kashmir Chamber of Commerce and Industry (KCCI) General Secretary Faiz Bakshi on Saturday said the ongoing conflict between Iran and Israel could have serious implications for India’s economy and growth prospects.
Bakshi while talking to reporters in Srinagar said the war has already triggered a sharp surge in global oil prices, which could directly affect India as the country remains heavily dependent on imported crude oil.
He said the situation has created uncertainty in global energy markets, particularly due to rising tensions around the Strait of Hormuz, one of the world’s most important oil transit routes.
According to energy data, India imports nearly 90 percent of its crude oil requirements, making the country vulnerable to global supply disruptions and price shocks.
Bakshi said any escalation in the conflict could disrupt oil shipments passing through the Strait of Hormuz, a narrow waterway linking the Persian Gulf with global markets.
Experts say around 35–50 percent of India’s crude oil imports pass through the Strait of Hormuz, making it a critical energy lifeline for the country.
“If tensions escalate and shipping through this route is affected, India could face serious challenges in securing oil and gas supplies,” Bakshi said.
He added that rising crude prices could lead to higher fuel costs, increased inflation and pressure on economic growth.
Recent global developments have already pushed oil prices above $90 per barrel, raising concerns about inflation and economic stability worldwide.
Bakshi said higher oil prices would also increase India’s import bill and could weaken the rupee, affecting trade and domestic markets.
The KCCI leader warned that sectors dependent on fuel and transportation could face additional pressure if the conflict continues for a prolonged period.
He stressed that the situation requires close monitoring as prolonged instability in West Asia could have ripple effects across India’s economy, particularly through energy supply chains and rising commodity prices. [KNT]
