West Asia Crisis: India Faces Economic Fallout from Distant War

• The ongoing West Asia crisis, particularly Operation Epic Fury, is causing significant global economic consequences, impacting energy costs, shipping, and insurance.
• India is heavily reliant on the Strait of Hormuz for nearly half its crude oil imports and a substantial share of LNG/LPG, leading to severe supply disruptions.
• India's high import dependency for crude oil (85%) and LPG (62%) makes it vulnerable, with the Middle East accounting for 45% of crude imports despite increased Russian supply.
• A Parliamentary Standing Committee report highlighted India's declining domestic oil production and recommended diversifying imports, expanding exploration, and increasing strategic reserves.
• The crisis also threatens remittances from 10 million+ Indians in the Gulf, impacts trade links, and jeopardizes the Chabahar port waiver, urging India to diversify its energy basket and invest more in domestic resources.