iran israel war news today: As India rides the world through crises, be it the Russia-Ukraine conflict or more feared Iran and Israel war, inflation is still on its list of major challenges. But these have a direct connection with disrupting global oil supplies-thereby hitting India hard, as it is one of the largest oil importers in the world.
However, India has managed its inflation well under its belt in the past by using strategic measures such as diversifying oil supplies, making strategic use of strategic reserves, and promoting renewable energy.
🚨🇮🇷🇮🇱 15 minute SUPERCUT video of IRANIAN ATTACK on Israel. pic.twitter.com/aJYz89gAQt
— Jackson Hinkle 🇺🇸 (@jacksonhinklle) October 2, 2024
Now Determine how India manages to stay above inflationary pressures during such global crises like the Russia-Ukraine conflict and the one that may arise due to the Iran and Israel war. Learn how it may evade the scenario caused by rising crude oil prices due to the following economic instability.
“Iran’s attack is a severe and dangerous escalation. There will be consequences…We will respond wherever, whenever and however we choose, in accordance with the directive of the government of Israel.”
Watch IDF Spokesperson RAdm. Daniel Hagari regarding Iran’s large-scale… pic.twitter.com/A8pyC7eawI
— Israel Defense Forces (@IDF) October 1, 2024
It has had to contend with a host of global crises, not least the economic after-effects of the COVID-19 pandemic and the inflationary pressures from the Russia-Ukraine conflict, which have caused disruptions in global supply chains, especially with crude oil, pushing higher inflation rates.
Now, when the tensions between Iran and Israel are mounting up, the world can stand poised on one more possible fight that may significantly work towards catching the overall global supplies of oil and create higher inflationary pressures in India. This article describes how India tamed inflation in the past and what working strategies can be devised to deal with the economies that will suffer from any war between Iran and Israel.
India’s Historical Battle with Inflation: Surviving the Pandemic-Induced Inflation
The general effect of the COVID-19 pandemic was the ransacking of the world’s economies, and India was not immune to this. Industrial activity came to a grinding halt with disrupted supply chains and caused an increase in inflation. In an increase in demand but with limited supplies, India experienced the inflation of essential goods, most being crude oil. India somewhat contained inflation through effective monetary policies and government intervention.
iran israel war news today: Lessons from Russia-Ukraine Conflict
This again, the Russia-Ukraine conflict in 2022 pushed the global oil price high. Being the largest consumer of crude oil, India faced intense inflationary pressures. But through strategic action — through diversification of oil supply and tapping into its strategic reserves — India could stabilize its economy and keep inflation in check. These lessons will be crucial when tensions rise between Iran and Israel and lead to further oil supply disruptions.
Impact on India’s economy due to an Iran-Israel war
Iran and Israel’s war could bring in profound effects on the global oil market, since it has a crucial position when it comes to Middle East oil exports. Supply chain at Strait of Hormuz would get disrupted since it is an important route for global oil shipments if war takes a strenuous turn. Cutting-off of oil supply would also help raise crude oil prices at a boom-affecting the economy line of India. iran israel war news today.
Since India imports about 85% of its crude oil, such a conflict would likely push inflation rates higher as transportation, manufacturing, and essential goods become more expensive. Additionally, the Indian rupee could weaken due to rising oil import bills, further adding to inflationary pressures.
How India Can Manage Inflation During the Iran and Israel War
1. Diversifying Oil Supply Sources
India has already begun to reduce its dependence on Middle Eastern oil by importing more from the U.S., Russia, and Africa. This strategy will be essential if the Iran and Israel war disrupts oil supplies from the region. By ensuring alternative oil sources, India can limit the impact of oil shortages on its economy and stabilize inflation.
2. Leveraging Strategic Oil Reserves
India’s strategic oil reserves will play a critical role during any disruption caused by the Iran and Israel war. Tapping into these reserves can provide a short-term solution, ensuring that domestic oil supply is not immediately impacted, thereby helping control rising oil prices and inflation. iran israel war news today.
We have never been closer to World War 3 than we are today after Iran’s ballistic missile attack against Tel Aviv and Israel that is destroying their Iron Dome. This is a direct result of Kamala’s failed foreign policy. I will solve this war in day one! pic.twitter.com/epFLvp9WFd
— World life (@seautocure) October 1, 2024
3. Promoting Renewable Energy
Reducing India’s dependency on imported crude oil in the long term is vital. Increased investment in renewable energy sources such as solar, wind, and electric vehicles can help cushion the impact of future oil crises. The government’s ongoing efforts to promote renewable energy will help India remain resilient during the Iran and Israel war, mitigating the effects on inflation.
4. Tightening Monetary Policy
The Reserve Bank of India (RBI) will need to be vigilant in managing inflationary pressures. During the Iran and Israel war, the RBI may raise interest rates or reduce liquidity in the market to curb inflation. These actions, while potentially slowing economic growth, will help stabilize the currency and prevent runaway inflation.
5. Providing Targeted Subsidies
If the Iran and Israel war causes a sharp rise in fuel prices, the Indian government may need to increase subsidies on essential commodities like fuel and food to protect consumers. This approach will help reduce the immediate inflationary impact on the most vulnerable sections of society, while ensuring economic stability. iran israel war news today.
Preparing for Future Crises
As the world watches the escalating tensions between Iran and Israel, India must remain prepared for the potential economic fallout, especially in terms of rising oil prices and inflation. The country has already learned valuable lessons from managing inflation during the Russia-Ukraine conflict, and these strategies will be crucial in dealing with the challenges posed by the Iran and Israel war.
By diversifying oil sources, leveraging strategic reserves, promoting renewable energy, and tightening monetary policy, India can navigate this new global crisis while protecting its economy from severe inflationary pressures. India’s proactive measures and resilience will be key to weathering any storm caused by future geopolitical conflicts. iran israel war news today
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