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How the Middle East conflict affects India

Financial Times Asia
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Escalating Middle East tensions in early 2026 disrupted India’s oil imports, causing a 12% price surge and straining inflation, as 60% of its crude comes from the region. India’s remittance inflows from Gulf nations dropped 8% due to conflict-related job losses, impacting Kerala and UP, where millions rely on overseas wages. Supply chain delays at key ports like Dubai and Jebel Ali raised shipping costs by 15%, hitting India’s pharmaceutical and textile exports to Europe. New Delhi accelerated diplomatic talks with Iran and Saudi Arabia to secure energy deals, balancing relations amid shifting regional alliances. Tech and startup sectors faced funding shortfalls as Gulf sovereign wealth funds, major investors, paused commitments amid geopolitical uncertainty.
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Source: Financial Times Asia

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