Today: 20 October 2025
9 November 2023
2 mins read

India Inc ‘unaffected’ by Israel-Hamas war, says CRISIL

Israel is a major global producer of muriate of potash (MoP) and among the top three countries that India imports…reports Asian Lite News

The ongoing conflict in the Middle East, confined mainly to the Gaza region now, has caused only negligible disruption in India’s trade so far, said Crisil Ratings, implying that the Indian companies were not in the crosshairs for now.

Some sectors such as fertilisers and diamonds — both cut and polished — may see a slight, but manageable, impact, while for most others impact will be insignificant, the rating agency said on Tuesday in a report.

However, the conflict has driven up prices of gold and crude oil.

“Their trajectories will bear watching, especially crude oil, given India’s high dependence on its import. Also, elevated crude oil prices have a cascading impact on a host of other sectors that consume the oil itself or linked raw materials,” the Crisil report noted.

India’s trade with Israel is relatively low, accounting for 1.9 per cent of total exports and 0.3 per cent of total imports last fiscal

The merchandise exports mainly comprise polished diamonds and petroleum products, including refined hydrocarbons, while imports largely comprise industrial equipment, fertilizers, rough diamonds and precious stones.

For domestic diamond polishers, Israel is primarily a trading hub. Exports to the country were 5 per cent of total diamond

exports from India last fiscal. Additionally, 2 per cent of all roughs imported are from Israel. Polishers also have alternative trading hubs, such as Belgium and the United Arab Emirates, with ultimate customers based in the US and Europe.

Israel is a major global producer of muriate of potash (MoP) and among the top three countries that India imports

from, accounting for 25 per cent of all MoP imports last fiscal. However, the share of MoP (as a final product or as an

ingredient in other fertilisers) remains low at 10 per cent of domestic fertiliser consumption.

Crisil said India’s ability to source from other countries lowers the supply risk.

The CRisil report, however, cautioned that any spillover of the conflict to nearby oil producing and exporting regions could result in supply-related constraints and spiralling prices of crude oil.

Within a week of the conflict, crude oil prices rose 4 per cent to USD 90 per barrel but have stabilised a tad lower thereafter.

A sharp rise in crude oil prices will impact linked sectors in India, such as aviation, automotives, paints, tyres, cement, chemicals, synthetic textiles and flexible packaging.

Besides, higher inflation may lead to interest rates continuing to rule firms in India till the conflict de-escalates, the rating agency noted.

ALSO READ-IDF Tightens Grip on Hamas

Previous Story

2+2 talks to focus on security cooperation

Next Story

Israeli construction sector seeks nod to employ Indians

Latest from -Top News

Clearing A Mess in Gaza

Municipalities across Gaza have mobilized their limited resources to clear streets and set up temporary shelters for thousands of displaced families…reports Asian Lite News The conflict has left behind an estimated 55

Gaza, Malaysia to help Gaza Rebuild

Egyptian, Malaysian leaders discuss Gaza aid, reconstruction amid ceasefire…reports Asian Lite News Egyptian President Abdel Fattah al-Sisi and Malaysian Prime Minister Anwar Ibrahim spoke by phone about efforts to support Gaza’s reconstruction,

Netanyahu to Run Again in 2026

When asked whether he expects to win, Netanyahu said, “Yes.”…reports Asian Lite News Israeli Prime Minister Benjamin Netanyahu has confirmed his bid for re-election in the 2026 parliamentary polls. He made the

UK backs Egypt-led Gaza stabilisation force

Britain takes an advisory and strategic role in US-backed efforts to establish a UN-mandated international force in Gaza and guide reconstruction plans estimated at £50bn…reports Asian Lite News Britain is taking a
Go toTop

Don't Miss

Kia India’s May Sales Rise 3.9% Year-on-Year

The automaker said it also dispatched 2,304 units from India

Indian business community confirms Modi’s UAE visit on June 28th

Prime Minister Narendra Modi will visit the UAE on June