What can be the Impact of the Iran and Israel War on India?
A typical know-how about war is to be frightened by the terrifying results. Often, war is not just about two countries but impacts the trade relationships with other countries as well as the normal ecosystem that bounds the interconnectedness of each of us.
However, there is no personal comment on political diaspora or geopolitical issues, but things that can be controlled are beyond our ability to understand or comprehend the loss that can result in an immeasurable impact on our trading relationships and, hence, the financial ecosystem.
Let’s look at the interrelationship between Iran, Israel, and India and the diplomacy based on mutual economic interests, political considerations, and strategic alliances.
Is there a possibility for Iran and Israel to go through a conflicting and strenuous relationship with both countries? Is there a possibility of impacting trade dynamics?
India’s relationship with Iran
As per the experts and their reports, Iran is an important trading partner for India. In terms of energy imports, India is relying heavily on Iranian oil and also disrupting the oil supplies due to conflict with adverse effects on its economy.
It is just not importing Iranian oil, but investments done by India in various sectors in Iran, such as infrastructure, healthcare, and agriculture.
Hence disrupting the investments and also hindering further economic cooperation.
And what about
India and Israel’s relationships?
Israel is a significant trading partner for India in sectors such as defense, technology, and agriculture. The countries are benefiting massively due to their collaboration in R&D, innovation, and joint ventures.
Over the years, a significant dependency has been seen on India over the Israeli defense system. One of the largest suppliers of defense technology and weaponry.
A range of missile defense systems, unmanned aerial vehicles (UAVs), radars, electronic warfare systems, and small arms are of prime importance for India to supply Israel’s defense equipment.
Missile defense, drones, and electronic warfare are the major expertise zones of Israel, which are highly valued and not easily replaceable.
Impact of the trade on India’s ties with Iran and Israel
As we go through the expert reports, the ripple effect can be observed in global trade, impacting not only India but also other nations.
It is a challenging diplomatic position for India to handle the impact of the war between Iran and Israel and balance the equation based on humanitarian grounds. Economic stability is the utmost priority. Also providing national safety and support for the workers or employees trapped in Germany.
The global financial market can also be seen as an important zone that could be impacted by currency exchange rates and investment flows.
Awareness on Israel impacts collaborations in defense equipment, aerospace industries, or even other joint ventures. The potential to disrupt supply chains and delays in tech supplies can result in a major problem in the trading partnership between India and Israel.
Israeli startups in the technology sector, also known for their innovation and technology prowess in various sectors such as healthcare, fintech, and e-commerce, lead to disruptions in collaborations and skillful impacts.
A disturbance in the normalcy of the lifestyle impacts heavily the ongoing tech market and results in disturbing the trading partnership.
Conclusion
In conclusion, the Israel and Iran war could significantly impact the trading partnership with India. The results are also unknown and uncertain as to how and when it’s going to end. Will there be an end for all time or it’s just a break?
The diplomatic efforts and rules of each diplomat and diplomacy would play a major role in the disruptions affecting the countries. The situation monitoring is of utmost importance for India.
Sources:- Economic Times, Indian Embassy, The Indian Express
