Prolonged Tensions To Hit Import of Fertilizers, Metals, Building Materials and Diamonds

 Chennai: The impact of Middle East tensions will extend beyond the supply of crude oil and natural gas. Fertilizers, diamonds, industrial raw materials, metals and construction materials.

In 2025, India imported $98.7bn worth of goods from West Asia, making the region a crucial supplier for energy, fertilisers and industrial raw materials.

The region includes the six Gulf Cooperation Council countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE — along with other regional economies such as Iran, Iraq, Israel, Jordan, Lebanon, Syria and Yemen.

“If disruptions to shipping through the Strait of Hormuz continue beyond a week, the effects could quickly spread from energy markets to fertiliser supplies, manufacturing inputs, construction materials and export industries such as diamonds,” said Ajay Srivastava, founder, GTRI.

India imports around $70 billion crude and petroleum products come from West Asia. Further, in 2025, India imported $3.7 billion worth of fertilisers from West Asia. This included $2.2 billion of mixed fertilisers (NPK), accounting for 31.1 per cent of imports, and $1.5bn of nitrogen fertilisers, representing 30.3 per cent of imports.

Around $6.8 billion worth of rough diamonds came from West Asia, accounting for 40.6 per cent of imports. Any disruption in raw diamond shipments could slow production and affect employment in the jewellery sector.

India imported $1.2bn worth of polyethylene polymers from West Asia, accounting for 35.6 per cent of imports of this plastic feedstock. Supply shortages could disrupt packaging industries and consumer goods manufacturing.

West Asia also supplies $483 million worth limestone and shortages can push up cement prices and delay infrastructure projects. It also supplied $420 million worth of sulphur, and $129mn worth of gypsum.

Among metals, $190mn worth of direct reduced iron (DRI) is used for steelmaking and $869 million worth of copper wire is used in power transmission, electrical equipment and renewable energy infrastructure.