The Federation of Indian Airlines has warned the government that operations may halt due to soaring fuel prices caused by the Iran war. The conflict has sharply increased global jet fuel costs, forcing Air India Group to revise fuel surcharges on domestic and international routes. Restrictions on Middle Eastern airspace have lengthened flight paths, raising expenses. The war has disrupted energy flows, driving inflation, weakening the rupee, and straining India’s energy security and foreign policy.

India’s pharmaceutical industry, a major global supplier of generic drugs, is also under pressure from rising energy costs and disrupted logistics. Delays in raw material shipments from China and higher transport and insurance costs have doubled production expenses. The country’s heavy dependence on Middle Eastern oil and gas has deepened the crisis, with LPG and LNG supplies severely affected. Domestic protests over living costs have erupted, and remittances from expatriates in the region are at risk as many return home.

A UNDP report warns that over 2.5 million Indians could fall into poverty due to the ongoing crisis. Political opposition has blamed Prime Minister Narendra Modi’s foreign policy, though recent state elections show the ruling party remains resilient.