West Asia war digest, March 16: Stories tracking the economic fallout

West Asia war enters third week as Indian markets lose $447 billion in m-cap and sectors from LPG to exports, ports and services feel the economic strain

The escalating conflict in West Asia continues to take a toll on the Indian economy, eroding m-cap by about $447 billion and affecting sectors from energy and exports to logistics and services.

 

Business Standard's coverage today tracks these emerging risks and maps economic implications of the crisis.

 

Take a look at our coverage:

 

1. India’s stock market has already lost $447 billion in value since the conflict began, mirroring the scale of losses seen during the Covid market crash. Samie Modak reports that the selloff reflects rising investor anxiety over oil prices, supply disruptions through the Strait of Hormuz and foreign investor outflows.

 

 

2. Service industries, from aviation to restaurants and logistics, are facing rising costs and operational disruptions. Deepak Patel, Udisha Srivastav, Peerzada Abrar, Akshara Srivastava, Shivani Shinde and Gulveen Aulakh report how higher aviation fuel prices, LPG shortages and workforce disruptions are affecting airlines, travel, hospitality, quick commerce and logistics.

 

3. LPG shortages are beginning to affect factory canteens in India’s automobile sector. The Society of Indian Automobile Manufacturers has asked the petroleum ministry to prioritise LPG supply for plant canteens to avoid disruption to shift operations, reports Deepak Patel.

 

4. Indian gems and jewellery exports have already fallen about 20 per cent due to disruptions in West Asian trade hubs. Akshara Srivastava writes that exporters could lose up to $1.2 billion over three months if the conflict continues, with Dubai serving as a crucial gateway to Gulf markets.

 

5. Air India pilots are temporarily allowed longer duty hours due to rerouted international flights. The aviation regulator granted exemptions from standard duty rules after Iranian and Iraqi airspace closures forced longer flight paths, reports Deepak Patel.

 

6. India’s oil import bill could surge sharply if crude prices stay above $100 per barrel. Economists estimate a potential $56–64 billion annual increase in oil imports if prices average $110–115, report Shubhangi Mathur and Saket Kumar.

 

7. Container congestion is building up at major Indian ports as shipping routes are disrupted. More than 30,000 containers are stuck in supply chains, while freight costs and insurance premiums have risen sharply, reports Dhruvaksh Saha.

 

8. Farm exports worth billions are at risk if Gulf markets remain disrupted. Sanjeeb Mukherjee reports that $11.8 billion of agricultural exports to West Asia, especially rice and meat, could be affected if the crisis continues.

 

9. Corporate investment plans worth ?3.6 trillion face uncertainty as geopolitical risks rise. Sachin P Mampatta writes that companies may rethink future capacity expansion even as projects already under way continue.

 

10. Wedding caterers and restaurants are turning to coal and wood as LPG shortages intensify. Saket Kumar reports that businesses in Delhi-NCR are cancelling orders and absorbing higher fuel costs to keep events running.

 

11. India is turning to Russian crude to offset falling supplies from West Asia. S Dinakar writes that large volumes of Russian oil in floating storage could help India meet demand for several weeks.

 

12. Economists are revising India’s growth forecasts as oil prices threaten macroeconomic stability. Himanshi Bhardwaj and Asit Ranjan Mishra report that several institutions have trimmed FY27 GDP growth projections due to higher energy costs.

 

13. The rupee is under pressure as higher oil prices widen external imbalances. Anjali Kumari explains that the Reserve Bank of India is balancing currency intervention with bond purchases to stabilise financial conditions.

 

14. Government and exporters are adjusting supply chains and policies to manage war-related disruptions. In an opinion column, TNC Rajagopalan writes that firms are rerouting shipments, revising contracts and hedging risks while the government extends export deadlines.

 

15. A weaker rupee may actually help India stabilise its economy during the shock. In an opinion column, Ajay Shah argues that currency depreciation acts as an automatic stabiliser by boosting exports and reducing imports.

 

16. Despite the correction in headline indices, investor portfolios have suffered deeper losses. HDFC Securities CEO Dhiraj Relli tells Sundar Sethuraman that broader markets have been hit harder even as corporate earnings outlook remains relatively resilient.