E-Paper
Sign In
Not just LPG: India's agriculture, exports also impacted by US-Israel-Iran war
More than 70 per cent of India’s basmati exports are sent to the Middle East, and if the war continues for long, it could hit the trade badly, according to Crisil Ratings
- PUBLISHED: Thu 19 Mar 2026, 3:13 PM
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
A report by Crisil Ratings states a prolonged war in the Middle East could affect India's agricultural sector, including the cultivation of basmati rice, as well as the availability of fertilisers, and other industries such as diamond polishing, airlines and tour operators.
Recommended For You
More than 70 per cent of India’s basmati exports are to the Middle East, and if the war continues for long, it could hit the trade badly. Even the ceramics sector could get hurt because of the limited availability of LNG (liquefied natural gas) and LPG (iquefied petroleum gas), besides the loss in exports to the region, said the report.
Countries in the Gulf and the Middle East, including the UAE, accounted for about 10 per cent of India’s total non-energy imports in 2024. And, according to a Barclays report, India’s dependency is especially high for imports of diamonds (47.5 per cent of the country’s total imports were from the Middle East), fertilisers (63 per cent), polymers (50 per cent) and hydrocarbons (48 per cent).
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
India’s top non-energy imports from the Middle East in 2024 included gold (28.9 per cent of its imports), aircraft (32 per cent), polymers of ethylene (50.4 per cent), platinum (65.6 per cent), fertilisers – nitrogenous (63 per cent), cyclic hydrocarbons (47.9 per cent), and fertilisers containing two or three elements of NPK (32.3 per cent).
In sectors such as precious metals (gold, diamonds, platinum and silver), India imports the raw materials, processes them and then exports finished jewellery.
As the Middle East is a major destination for these exports, disruption of imports because of the Iran war could affect its exports as well, said the Barclays report. However, for sectors including aircraft components and fertilisers, alternative sources can offset the disruptions.
On a bright note, according to reports, beyond energy, “India’s dependence on the Middle East can be met via alternate sources and/or redirecting domestic production for domestic consumption, before exports.”
“If the supply disruption prolongs, leading to a surge in international prices, the government may have to raise fertiliser subsidies, similar to its policy reaction following the Russia-Ukraine conflict,” said the Barclays report quoted in India media.
“However, media reports indicate the government is already trying to diversify sources of imports including from China.”
