The US-Iran conflict, which has now entered its 19th day, is causing rising tensions across West Asia, affecting global energy supply significantly. The blockade in the Strait of Hormuz by Iran has created pressure on supply chains, and this disruption is beginning to manifest in several key sectors in India. As India imports about one-third of its chemicals and fertilizers from West Asian countries, any disruption in supply or shipping could lead to a decrease in fertilizer availability and an increase in import costs, ultimately placing a greater burden on the government's subsidies. Furthermore, increased fertilizer prices may lead farmers to use them less, potentially adversely affecting crop yields.

In addition to the agricultural sector, the manufacturing industry in India is also under pressure due to the ongoing conflict. Metals such as aluminum and copper, which are essential for the construction, electricity, electronics, and automobile industries, have seen a significant impact. From April 2025 to January 2026, India imported approximately 3.4 billion USD worth of these metals and related products from West Asia, which constitutes about 18 percent of the total imports in this category. The conflict has raised concerns about the stability of these supply chains, likely leading to increased costs and reduced availability of critical materials.

Overall, the implications of the US-Iran conflict extend beyond immediate military concerns, as economic sectors in India grapple with potential shortages and rising prices. The government may need to strategize on mitigating these impacts to ensure the stability of food production and industrial output in the country. As the situation evolves, it becomes crucial for policymakers in India to monitor and manage the repercussions of such geopolitical conflicts on domestic economic stability.