New Delhi: The Indian Women’s Press Corps (IWPC) hosted a panel discussion on “Impact of West Asia Crisis on Indian Economy” on 3rd June 2026 bringing together economists, diplomats and academics to examine the implications of the ongoing turmoil in the region for India…
The discussion featured Prof. Arun Kumar, noted economist and former Professor at Jawaharlal Nehru University (JNU); Amb Anil Trigunayat, former Ambassador to Jordan, Libya and Malta; and Dr. Sima Baidya, Assistant Professor at the Centre for West Asian Studies, JNU.
There have been signs of a decline in the economic situation reflected in the falling value of the rupee, weak investor sentiment, stagnant wages and inflation. The West Asia crisis has exposed and intensified existing fault lines in the economy.
Expanding on this, Prof Arun Kumar said that a significant share of India’s crude oil imports originates in the region, any disruption to supply routes or spikes in prices would have wide-ranging consequences.
This affects only fuel prices but a range of petrochemicals derived from crude oil that
are the fundamental building blocks for thousands of everyday items.
This would impact production costs of medicines, fertilisers etc,
He stressed that while India has developed a degree of resilience in recent years, prolonged instability in West Asia could affect economic growth, investment flows and consumer demand.
While the immediate trajectory of the war remains unclear, Ambassador Trigunayat said India must remain vigilant and continue diplomatic engagement with all relevant stakeholders. He spoke about India’s long-standing efforts to diversify energy sources and build strategic partnerships beyond West Asia. “The region remains critical to India’s energy security and economic interests,” he said, pointing out that geopolitical instability has historically had ripple effects across global markets and warned that the current crisis could trigger further volatility if it escalates.
Dr. Baidya placed the conflict in its broader geopolitical context, describing the US-Israel attack on Iran as an imposed war with global implications. “Although India is not a direct participant in the conflict, it cannot remain unaffected by its consequences. . India needs to have a sttong voice that calls for a halt to the war.
The panellists agreed that the country’s continued dependence on imported energy and its integration into the global economy make it susceptible to prolonged disruptions in West Asia.
The need of the hour is diversification of energy supplies,, strategic planning and sustained diplomatic efforts to mitigate potential risks.
