BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

Impact of the Israel-Hamas Conflict on India&Global Economy



  Nov 07, 2023

Impact of the Israel-Hamas war on India



Global Repercussions:

The Israel-Hamas war adds to the uncertainty and anxiety in the global economy, along with other recent geopolitical events.

If the war escalates and involves more countries, especially Iran, it could lead to significant disruptions and economic slowdown worldwide.

Crude Oil Prices:

While Israel and Gaza are not major oil producers themselves, the war could affect oil-producing countries in West Asia, including Iran and Saudi Arabia.

Any disruption in the Strait of Hormuz, a crucial oil transit route, could impact oil and gas supply and prices.

Economic Corridor:

The India-Middle East-Europe Economic Corridor (IMEEC), connecting India and Europe through West Asian countries, may face delays or challenges due to the war.

If Arab countries align against Israel, it could affect the progress of this project.

Depreciating Rupee:

The Indian rupee has weakened, partly due to rising oil prices, and it may continue to be under pressure if oil prices rise further.

A weaker rupee can lead to higher inflation and may delay the Reserve Bank of India's plans to reduce interest rates.

Falling Stock Markets:

Indian stock markets initially saw volatility in response to the Israel-Hamas conflict, with investors withdrawing funds, but they later recovered.

The situation remains uncertain, and market sentiments are fragile.

Trade:

India and Israel have a significant bilateral trade relationship, with trade diversifying beyond diamonds.

Trade between the two countries may not be immediately impacted but could suffer if the entire region becomes involved in the conflict, especially given the importance of the UAE as India's trading partner.

Overall, the Israel-Hamas war does pose potential risks to the Indian economy, primarily through its impact on oil prices, the economic corridor project, and the rupee's exchange rate. Monitoring the situation closely is essential to assess any evolving effects.

SRIRAM’s


Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
Enhancing India’s Dairy Sector through Amul’s Global Growth
 
Snakebite Management and Awareness in India
 
Snow Leopard Population Assessment in India (SPAI)
 
Hydrogen in Heavy Industries
 
Ice Stupas in Ladakh
 
Women-led Farmer Producer Organizations (FPOs)
 
Public Examinations (Prevention of Unfair Means) Bill, 2024
 
Indo-Bangla Tangail Sari GI Tags
 
Consumption Data and Disparity in India
 
India’s Household Consumption Expenditure Data
 
Lichens: Effective Tools for Environmental Monitoring
 
Pollinators and Their Importance
 
Placers: A Comprehensive Understanding
 
Rare Earth Elements Mining in India
 
ISRO’s PAPA: A Milestone in Understanding Solar Phenomena