Скачать или смотреть Iran War Five Impacts on Indian Prices | Business | Sarthak Ahuja

There are 5 ways in which the Indian economy is getting hit because of the Iran War... and about 15 types of businesses that could get directly affected...

1/ Higher Crude Oil Prices - leading to inflation
2/ Freight and Insurance get costlier for international trade which compresses margins
3/ Rupee expected to fall more against the USD - because of more expensive imports
4/ Expect a lot more flight cancellations, so direct impact on the economy because of reduced business travel
5/ Spike in inward remittances from NRIs - but reduced household consumption

Now, you can see valuations of companies in Oil and Aviation to have directly hit, but there are a few businesses that are expected to see a second order hit in the coming few days...

👉🏻 Rice - Iran is the single largest buyer of our Basmati Rice, followed by Iraq, such that the GCC countries take more than 50% of India’s Basmati export

Right now, more than 200,000 tonnes of Basmati is stuck in ships that can’t move.

This means, we could see the domestic market be flooded by a lot of rice which can’t be exported and rice prices could come down

👉🏻 Gems, Jewellery and Diamonds - More than half of India’s gold and rough diamond imports flow in from Dubai... which is disrupted at the moment. This will reduce exports from Surat... and because of reduced inflow of gold, gold prices could go up.

👉🏻 Surat is hit yet again because of its polyester yarn based fabric becomes more expensive to procure, squeezing margins, and exporting ready orders for garment manufacturers becomes more expensive... so people in the business of garment manufacture and export could be hit soon

👉🏻 Paints, Tyres, Chemicals industries are directly hit because of rising raw material cost, so we could see prices go up there

👉🏻 Agriculturists could be majorly hit as almost 70% of India’s (sulphur) fertilizer imports come from the Gulf... directly impact food costs for the upcoming sowing season in June

👉🏻 International Travel may take a hit, so agents should start pushing domestic destinations.

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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years