Why is India edgy about Israel's war? The threats that loom over India
Israel but so far there are no reports of any Indian getting injured or kIlled, just as the government has mounted Operation Ajay to evacuate Indian citizens. That's the immediate threat the conflict poses to India. However, India will be impacted in many serious ways if the conflict drags on or explodes into a bigger war. The conflict could widen as Israel began ground raids inside the Gaza Strip. Israel's announcement marked a shift from an air war to ground operations to root out Hamas fighters a week after the Palestinian terror group's deadly rampage in southern Israel.
Live: The latest on the Israel-Hamas conflict
The possibility of Israel-Hamas conflict dragging in many other countries is spooking the economy since any trouble in West Asia will have an immediate impact on oil supply, a frightening prospect after another geopolitical crisis, the Russia-Ukraine war, rattled the world last year disrupting energy and food trade. Given that the global economy is not in good health and the threat of recession looms in the US, the conflict poses a serious threat.
How exactly will India be hit by the conflict? It seems a contained conflict that does not last long will not upset India in any significant manner but a longer conflict can destabilise India's economy.
Impact of Israel-Hamas conflict on the Indian economy
The biggest aspect to watch is the impact on oil prices. India meets 85% of its oil needs through imports. A price spurt will leave the government little fiscal space for social welfare spending by inflating the import and fuel/fertiliser subsidy bills, which will weaken the rupee by impacting the current account deficit. The overall impact can also hurt the GDP growth.
In striking
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