West Asia conflict | Oil to have impact on inflation, external balances: Report
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A report by Rubix Data Sciences and Vayana TradeXchange finds that every $10 per barrel increase in crude prices raises India's annual oil import bill by $13-14 billion, affecting inflation and external balances. The report assesses the economic impact of the West Asia conflict on India, highlighting the country's significant exposure to the region across energy imports, trade flows, and remittances.
India's oil import bill increases by $13-14 billion with every $10 per barrel rise in crude prices. The country imports nearly 88% of its crude oil requirements, with 46% sourced from West Asia. The report identifies crude oil, LNG, and fertilizers as high-risk sectors due to their dependence on imports. India's trade with West Asia stood at $220 billion in FY2025, with a structural trade deficit driven by energy dependence. The conflict may also impact remittances, with India receiving $135.4 billion in remittances in FY2025, 38% of which came from GCC countries.
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