How dependent is India on Iran and Israel? If the war is not stopped, India will suffer this loss.
Impact of the Iran-Israel war: The great conflict between Iran and Israel has once again reached its peak. Tension in the Middle East has increased due to Iran’s attack on Israel earlier in the week. India has good trade relations with both. India has expressed concern over rising tensions. An increase in this can also spook the market. India’s dependence on Iran and Israel is also considerable.
In such a situation, India does not want its two friends to collide with each other. Let us know what loss India will suffer if this war is not stopped or if tension increases. Firstly, let us know what India’s relations with Israel are like and how much business has happened between the two in the last few years…
Trade increased in four years
India established diplomatic relations with Israel in 1992. Since then, trade between the two countries has increased significantly. It has increased from about $200 million (especially diamonds) in 1992 to $10.7 billion (except defense) in fiscal year 2022-23. This increase has accelerated in the last four years. During this period business doubled. It increased from $5.56 billion in 2018-19 to $10.7 billion in 2022-23. Trade increased by 36.90 per cent between 2021-22 and 2022-23. It increased from $7.87 billion to $10.77 billion.
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Also read: What does India take from Iran and Israel? Businesses worth billions
India-Israel bilateral trade reached $5.75 billion during the first 10 months (April-January) of the financial year 2023-24. During the financial year 2022-23, Israel accounted for 0.92 per cent of India’s total trade of $1.167 billion. In this way it became India’s 32nd trading partner. According to the Ministry of External Affairs (MEA), India is Israel’s second largest trading partner in Asia. It is the seventh trading partner worldwide.
What is the transaction between Israel and India?
The most valuable products exported from India to Israel include diesel, diamonds, aviation turbine fuel, radar equipment, basmati rice, T-shirts and wheat. During 2022-23, the share of two commodities, diesel and diamonds, in total exports was 78 per cent. At the same time, India imported items such as space equipment, potassium chloride, mechanical appliances, turbojet propulsion and printed circuit boards. ,
How are India’s relations with Iran?
While on the one hand, trade between India and Israel has increased in the last few years, on the other hand, the value of trade between India and Iran has decreased in the last five years. Iran was India’s 59th largest trading partner in the financial year 2022-23. Bilateral trade with that country reached 2.33 billion dollars. India’s trade with Iran has contracted before rising in the 2022-23 financial year. There was an increase of 21.77 per cent in 2021-22. Increased from $1.94 billion to $2.33 billion in 2022-23.
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However, its last three years (2019-20, 2020-21 and 2021-22) saw a year-on-year contraction from 9.10 percent to 72 percent in view of US sanctions on Iran. Trade with Iran also declined from a high of $17 billion in 2018-19 to $4.77 billion in 2019-20 and $2.11 billion in 2020-21.
What is the trade between Iran and India?
India’s exports to Iran amounted to $1.66 billion out of a trade of $2.33 billion in 2022-23. While Indian imports from Iran amounted to only $670 million. India’s bilateral trade with Iran reached $1.52 billion during the first 10 months (April-January) of the financial year 2023-24. Bilateral trade accounted for 0.20 per cent of India’s total trade during the financial year 2022-23. India mainly exports agricultural and livestock products to Iran. These include meat, skimmed milk, buttermilk, ghee, onion, garlic, and canned vegetables. At the same time, India imported methyl alcohol, petroleum bitumen, liquefied butane, apples, liquefied propane, dates and almonds from Iran.
What will be the loss for India?
After the missile attack by Iran, there is an increase in crude oil prices. Following the arrival of this news, the prices of Brent crude oil from the Gulf countries and US WTI crude oil are experiencing an increase of more than 4 percent. The price of Brent crude oil has surpassed $74 per barrel. The tension between both countries will affect crude oil prices.
Read also: How much is the price of a liter of gasoline in Israel? How much cheaper than India?
impact on the market
The tension between Iran and Israel will especially affect those countries that depend on oil imports, such as India and China. Regarding the impact of the rising tension between Iran and Israel on the Indian stock market, experts say that the Indian market is in a strong position with strong domestic investment and continued liquidity. However, due to geopolitical tensions, India will also not be left untouched.
