India has set a goal of becoming a developed country by 2047, which requires 8–11% GDP growth. However, if crude oil prices remain around $100 per barrel, this could impact economic growth.

The Middle East crisis had a major impact on India.

Middle East Tensions:  It has been nearly two weeks since the ongoing conflict in West Asia, but there is still no visible improvement in the situation. There has been no sign of a compromise from Iran, nor has there been any sign of a de-escalation from the United States or Israel. Meanwhile, crude oil prices are again on the rise. Crude oil recently reached nearly $120 per barrel and is now trading above $100 again.

This tension is directly impacting India's economy and the lives of ordinary people. Let's understand the impact this conflict is having on India.

1-Gas shortage

The war has disrupted global energy supplies. The closure of the Strait of Hormuz has significantly impacted oil and gas supplies. India imports approximately 80% of its energy needs, so this crisis is directly affecting the country.

Many industries, such as fertilizer plants, tile factories, and restaurants, are being affected by the gas shortage. The National Restaurant Association of India (NRAI) has advised its members to reduce menus, increase the use of electrical appliances, and reduce working hours.

2-Impact on funeral arrangements

The impact of the LPG shortage has reached crematoriums. In many places, gas-powered furnaces have had to be shut down, and cremations are now being conducted using wood.

3-Airfare is expensive

Rising jet fuel prices have increased airline costs. Furthermore, insurance for flights on Middle East routes has become more expensive. The war has led to the cancellation of more than 46,000 flights worldwide and significantly increased international airfares.

4- Gold- silver prices fall

Gold prices typically rise during times of global tension because it's considered a safe-haven investment. However, this time, rising oil prices have raised fears of rising inflation. This has increased the likelihood that the Federal Reserve will not lower interest rates. A strong dollar has put pressure on gold prices . According to reports, Goldman Sachs believes an interest rate cut is unlikely before September.

5-Impact on economic development

India has set a target of becoming a developed country by 2047, which requires a GDP growth rate of 8–11%. However, if crude oil prices remain around $100 per barrel, it could impact economic growth. It is estimated that this could lead to a decline of approximately 0.60 percent (60 basis points) in India's GDP growth rate.