Report titled ‘Military Escalation In The Middle East: Human Development Impacts Across Asia And The Pacific’ noted that the South Asia bears the largest absolute and relative economic losses.

Impact of conflict on India

• Human Development: The crisis could push nearly 2.5 million Indians into poverty. 
• Energy & Finance: Rising gas prices have led to weakening of Indian Rupee and forced a shift to coal, elevating pollution and health risks.
  • India gets over 40% of its oil imports and 90% of all LPG imports from West Asia.
• Trade & Health: Disruptions (such as stranded air cargo) threaten ~ US$48 billion non-oil exports to West Asia. 
• Agriculture & Food: West Asia supplies over 45% of India’s fertilizer imports, and 85% of domestic urea production relies on imported liquefied natural gas. 
  • A prolonged disruption threatens the vital upcoming Kharif (monsoon) season.
• Labour & Remittances: About 9.37 million Indians in the Gulf are exposed to labour disruptions, threatening the 38 to 40% of inward remittances they generate.