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UNDP Report on West Asia Conflict
A report titled “Military Escalation In The Middle East: Human Development Impacts Across Asia And The Pacific” highlights that South Asia bears the highest economic losses. The findings outline multiple vulnerabilities for India across sectors.
Impact of Middle East Conflict on India:
| Dimension | Key Details |
|---|---|
| Human Development | Nearly 2.5 million people in India being pushed into poverty. |
| Energy Dependence | Over 40% of oil imports and 90% of LPG imports sourced from West Asia. |
| Energy and Financial Impact | Rising gas prices weakening the Indian Rupee and increasing reliance on coal. |
| Trade Exposure | Risk to approximately US$48 billion non-oil exports to West Asia due to disruptions. |
| Agriculture Dependency | Over 45% of fertilizer imports from West Asia and 85% of urea production dependent on imported LNG. |
| Food Security Risk | Threat to Kharif season due to disruption in fertilizer and energy supply. |
| Labour and Remittances | Comprises 9.37 million Indians in Gulf countries generating 38 to 40% of inward remittances. |
| Policy Priority Social Protection | Targeted cash transfers for informal workers, migrants, and women. |
| Policy Priority MSME Support | Concessional credit, guarantee mechanisms, and business continuity support. |
| Structural Resilience | Investment in renewable energy, diversification of inputs, and strengthening domestic food systems. |
| Regional Cooperation | Joint approaches to energy and food security through diversified supply and stock management. |