How the Israel-Hamaz conflict affected India
India needs to be on its toes watching the Israel-Hamas conflict.
Which could do considerable harm given our huge exposure to West Asia.
Resultant high oil prices would be bad for our economy.
The current account deficit and inflation would surge.
If global growth is impacted, our exports and investment inflows may suffer.
The geopolitical instability may pose a threat to the security of our nine million-strong diaspora in West Asia.
With both Russia and Israel, India’s two most important defence suppliers, being currently mired in wars, our defence procurement may face uncertainty.
A protracted conflict may also fan international terrorism.
On the positive side, high oil income may raise prospects for higher investment and remittances from the Gulf countries.
India would need to be careful to leverage putative job openings in Israel, lest it put its citizens in harm’s way.
Besides, replacing Palestinian workers with Indians may further stereotype India.
The conflict has already subjected Indian diplomacy to some inelegant shifts, although we quickly regained our traditional balance.
All in all, New Delhi should keep its ear close to the ground and wait for the second shoe of the Gaza conflict to drop, hopefully, without any further seismic convulsions.
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