Oil, trade risks for India amid Iran-Israel war

Escalating Iran-Israel tensions threaten India’s energy security, potentially raising oil prices and inflation. Disruptions in West Asia, a crucial $178.5 billion trading bloc for India, could impact the rupee and force exporters to find new routes. The Strait of Hormuz, vital for energy imports, remains a key chokepoint.

Indian onion exports to West Asia have stopped. Major ports in the region closed operations on Sunday. This has suspended vessel movements. Consignments are now stranded. The disruption occurs during the Ramadan shipping window. Overseas demand typically surges by 30% at this time. Farmers in northern Maharashtra face subdued prices.

India’s electronics and tech exports to the Gulf face potential disruption due to the Iran conflict. The UAE, a major buyer, has seen its infrastructure targeted. Shipments to the UAE and Saudi Arabia, crucial markets for Indian electronics, rely on routes through or near Iranian airspace. This situation is being closely monitored by the government.

US President Trump has lifted a 25% tariff on Indian goods, fulfilling a trade deal contingent on India ceasing Russian oil imports. The agreement also includes a reduction in reciprocal levies and India’s commitment to purchase $500 billion in US energy and other products over five years.

India-US interim trade deal: The United States and India have agreed on an interim trade pact framework, aiming to lower tariffs and boost economic cooperation. This deal includes India reducing duties on U.S. industrial and farm goods, while the U.S. will apply reciprocal tariffs on certain Indian products, with plans for future removal. Both nations […]

India-US Trade Deal: India and the United States have established a trade deal framework, significantly lowering tariffs and boosting economic cooperation. The agreement includes India’s commitment to purchase $500 billion in U.S. goods over five years, with further negotiations planned for a comprehensive bilateral trade agreement.

Indian rice export prices rose to a near one-month high this week, supported by modest demand and a rebound in the rupee, while prices in Thailand and Vietnam remained steady. India’s 5% broken parboiled rice reached $353–$359 per ton, up from last week, and white rice was at $351–$356 per ton. The rupee’s 1% appreciation […]

The United States will reduce tariffs on goods from India. The tariffs will drop to 18% from the current 50%. This change will happen after a joint statement is signed virtually, marking the first part of a broader trade agreement. Washington plans to issue an executive order to put the lower tariffs into effect a […]

Switzerland’s Rado luxury watch company sees its price advantage from a new trade deal with India largely cancelled out. The rupee’s depreciation against the Swiss franc has reduced the expected benefits. The India-European Free Trade Association deal, starting in October 2025, aims to lower import tariffs on Swiss watches. However, currency fluctuations are impacting the […]

Indian solar equipment exports to the US are set for a significant boost. Tariffs are falling, making Indian solar modules and cells more competitive. Companies are now planning to export higher-value items like battery storage systems and inverters. This move is expected to drive capacity expansion and create new opportunities in the growing US market.