By Admin 
Middle East Tensions: Uncertainty in the global economy has increased due to the increasing war in West Asia. The increasing attacks between Iran and the United States have put pressure on the energy market, stock market and currency market. In such a situation, the question is arising that what effect can this tension have on India’s economy. Let us know the 5 big impacts on India-
1. Fear of surge in energy prices Rating agency Moody’s has warned that if the Iran war prolongs, there could be a big shock in the energy market. Due to this, there is a possibility of a huge jump in the prices of Crude Oil and Liquefied Natural Gas. India imports a large part of its energy needs, so this can have a direct impact on the country’s economy.
2. Inflation and pressure on rupee: If oil and LNG become expensive then it is considered certain that inflation will increase in India. This may weaken the Indian Rupee. Apart from this, due to obstruction in energy imports from Gulf countries, fuel, gas and transport costs may increase, which will affect the pockets of common people.
3. Impact on current account and fiscal balance: According to Moody’s, if the rupee weakens and energy imports become expensive, India’s current account deficit may increase. This will make it even more difficult for the government to maintain fiscal balance. There may also be pressure on economic growth.
4. Huge fluctuations in the stock market. The effect of the West Asia crisis is also visible on the Indian stock market. On Friday, BSE Sensex closed 1,097 points lower at 78,918.90, while Nifty 50 closed 315 points lower. Experts say that the pressure on the market has increased due to rising prices of crude oil and selling by foreign investors.
5. Indian Rupee is also under pressure due to weak rupee against dollar due to rise in oil prices and withdrawal of foreign capital. On Friday, the rupee fell six paise and closed at 91.70 (provisional) against the United States Dollar. However, the US administration has allowed Indian refineries to buy Russian oil for 30 days, which has curbed the fall of the rupee to some extent. That is, if the ongoing conflict in West Asia continues for a long time, its impact will not be limited to the oil market only, but can also be seen in inflation, stock market, rupee and India’s economic stability.
Also read: Sensex-Nifty closed down amid rise in crude oil prices due to Iran war, worst performance in a year