International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Volume 8 Issue 5
September-October 2026

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Geopolitical Conflict and its Economic Consequences: An Assessment of the Iran-Israel-United States War’s Impact on India’s Economic and Financial Stability

Author(s) Yuti Mangukiya, Aahan Lahoti, Aditya Kalwani
Country India
Abstract Geopolitical conflict generates economic consequences extending far beyond the countries directly involved, particularly through channels such as global energy markets and financial systems. This paper examines the extent to which the 2026 Iran-Israel-United States conflict challenged the economic and financial stability of India. Using secondary data from international organisations, government institutions and financial reports, the study analyses the principal transmission mechanisms through which the conflict affected the Indian economy, including energy dependence, inflationary pressures, exchange rate movements, financial market volatility and macroeconomic growth. The findings suggest that while the conflict did create measurable economic pressures through higher oil prices, increased import costs, depreciation of the rupee and weakening investor confidence, these effects remained largely short-term and did not develop into systemic instability. Monetary policy interventions, substantial foreign exchange reserves, diversified energy sourcing and resilient domestic demand helped to mitigate the severity of external shocks. The paper concludes that the conflict's effect on India’s economic and financial stability was moderate, highlighting both the structural vulnerability that comes from global economic integration as well as the importance of strong macroeconomic institutions in enhancing resilience to geopolitical uncertainty.
Keywords geopolitical risk, India, economic stability, energy security, financial markets.
Field Sociology > Economics
Published In Volume 8, Issue 5, September-October 2026
Published On 2026-09-12
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E-ISSN 2582-2160
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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