New Delhi, 20 June (IANS). The impact on most Indian companies in the Middle East is expected to be limited in the near future, as low capital expenditure and strengthening of the balance sheet of companies will provide protection from potential weaknesses. This information was given in the Crisil report released on Friday.
The report said that if this dispute goes on long, then crude oil prices will increase and this will increase inflation.
The report said, “So far the uncertainties released in the Middle East have not had any significant impact on the global trade of Indian industries. However, if the situation deteriorates, some areas like Basmati rice may have a greater impact and will require monitoring, while it may have some effect on other areas such as fertilizer and diamonds (both chopped and polished).”
According to the report, uncertainties in the Middle East region have affected the global crude oil markets, in the last one week, Brent crude remains in the range of $ 73-76 per barrel (BBL). At the same time, during April-May 2025, the average price of Brent crude was above $ 65 per barrel. If crude oil prices persist for a long period of long periods, it can affect the profits of India companies.
In addition, the report states that long -term uncertainties resulted in an increase in air/maritime freight costs and insurance premiums for export/import -based areas.
India’s direct trade with Israel and Iran is less than 1 percent of the total trade. India’s main export to Iran is basmati rice, trade with Israel is more diverse, and includes fertilizer, diamonds and electrical equipment.
India’s ability to export to the Middle East, US and other countries of Europe reduces demand risk.
The report states that prolonged crisis may cause a possible delay in payment from export side to these areas, which can lead to long working capital cycle.
-IANS
ABS/
