The Geopolitical Crucible: Assessing the Macroeconomic Implications of a US-Israel-Iran Conflict on the Indian Economy

Author(s)	Ms. Ramanjeet Kaur
Country	India
Abstract	This paper looks at the potential economic impacts on India if a military conflict breaks out or grows larger among the United States, Israel, and Iran. Because India relies heavily on the Middle East for oil, shipping routes, and money sent home by workers, any major trouble in the Persian Gulf directly affects its economy. By looking at how the economy is structured, this paper analyzes the main channels of impact—mostly volatile oil prices, supply chain delays in the Bab-el-Mandeb and Strait of Hormuz, rising inflation, and investors pulling their money out. It uses these factors to predict how the conflict would affect India's fiscal deficit, GDP growth, and central bank interest rate decisions.
Keywords	Geopolitics, Indian economy, GDP, Fiscal deficit.
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-06-02

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