How West Asia conflict may impact other core industries, beyond oil & gas, Pg16

Key Highlights:

• Ongoing conflict in West Asia poses supply risks to core Indian industries beyond oil and gas.
• India relies heavily on West Asia for industrial inputs like limestone, sulphur, gypsum, DRI, and copper wires.
• In 2025, India imported goods worth $98.7 billion from West Asia.
• Strait of Hormuz closure could trigger a global energy supply shock, impacting India.
• India imports over 60% of its limestone, gypsum, and sulphur from West Asia.

Detailed Insights:

• Disruptions in West Asia could impact sectors like steel, fertilizers, cement, power transmission, and diamond processing.
• Indian refiners are increasing purchases of discounted Russian oil due to crude oil stockpile concerns.
• If shipping disruptions persist for over a week, the impact may extend beyond oil and gas to fertilizer supplies and construction materials.
• India imported $483 million worth of limestone (68.5% of total) and $129 million worth of gypsum (62.1% of total) from West Asia.
• India also imported $420 million worth of sulphur (65.8% of total) and $190 million worth of DRI (59.1% of total) from the region.
• Rising energy costs are a major concern, even if alternative raw material sources are found.

Key Concepts Involved:

• Direct Reduced Iron (DRI): A key input in steelmaking, produced by reducing iron ore with a reducing gas.
• Sulphur: A nonmetal element used to produce sulphuric acid, essential for fertilizers and chemical industries.
• Limestone: A sedimentary rock composed mainly of calcium carbonate, a key ingredient for cement production.