By Admin 
Iran War Impact on Indian Economy: The impact of the Iran-America-Israel war has now directly reached the farmers of India. In March 2026, the production of fertilizer and urea in the country has fallen by 24.6 percent as compared to a year ago i.e. March 2025, which means about one-fourth less fertilizer was produced. This data has been released by the Commerce Ministry of the Central Government.
Urea production started decreasing due to rust
Fertilizer production has fallen by 24.6 percent in March 2026 as compared to March 2025, that is, about one fourth less fertilizer was produced. Natural gas is required to make urea. This gas largely comes from the Middle East i.e. Gulf countries, but due to the Iran war, the movement in Hormuz i.e. the sea route through which Gulf oil and gas goes around the world, almost came to a standstill. About one-third of the world’s fertilizer passes through this route. If the road was closed then gas did not come and if gas did not come then urea could not be made.
Now the Kharif season i.e. the time for sowing of paddy, maize and soybean is about to come. Urea is needed the most in this season. More than 45 percent of the country’s population is dependent on agriculture. If there is less urea, then either the farmer will have to buy fertilizer at an expensive price or the crop will be less. In both the circumstances, the farmer is at a loss.
Not only fertilizers but other sectors also faltered
Crude oil production has decreased by 5.7 percent. Coal has come down by 4 percent. Electricity production also decreased by 0.5 percent. Less coal means less electricity, this is a direct connection. Domestic production of natural gas increased by 6.4 percent, this has brought some relief. Steel i.e. iron and steel production has increased by 2.2 percent. Cement remained above 4 percent as construction work on roads and houses continued in the country.
The combined index of eight major industries fell by 0.4 percent in March 2026. It increased by only 2.6 percent in the entire financial year 2025-26, which is much less than in the last several years. Now that the Strait of Hormuz is still closed, the figures for April and May may be worse. The government will have to arrange for alternative supply of urea as soon as possible, otherwise both farmers and inflation can become a problem.
Condition of 8 big sectors of India amid Iran war
- Coal – 4% fall – impact on supply of imported coal due to disruption in shipping routes.
- Fertilizer – 24.6% fall – the biggest shock. Production halted due to stoppage of supply of urea and phosphate from Iran
- Crude oil – fell 5.7% – tension on Hormuz affected crude oil supply to domestic refineries
- Electricity — decreased by 0.5% – Coal shortage and expensive LNG depressed electricity production slightly.
- Natural Gas – increased by 6.4% – Domestic production gave relief but LNG imports became expensive.
- Refinery products – increased by only 0.1%. Despite the war, the refineries somehow kept running, a big relief.
- Steel – increased by 2.2% – domestic demand remained strong, direct impact of war less.
- Cement – increased by 4% – infra project continued, demand remained in the market.
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