New Delhi: The effects of the US killing of General Soleimani are becoming apparent on the global economy and puts stress on the Indian economy too. A sharp decline has been recorded in the Indian stock markets and the investors have lost a whopping ₹3.36 trillion. There has been a big rise in the gold rates and gold have seen an increase of ₹1,800 per 10 grams. The analysts warn that more severe jolts will be felt if the actual war breaks out between the United States and Iran.
The crude oil rates flared up in the international markets and have reached to USD 70 per barrel. Moreover, significant declines have been recorded in the global stock markets and Indian markets were no exception. The SENSEX of the Mumbai Stock Exchange dropped by 787 points in one single day. This is the first time since July that the SENSEX dropped by such a significant margin. NIFTY, the index of the National Stock Exchange fell by 233 points and the USD appreciated by 13 paise against the Indian Rupee.
Against the background of this uncertainty, there was a major increase in the gold prices and gold rates increased by ₹1,800 per 10 grams, in just two days. Following the death of Qassem Soleimani, by the United States, Iran has threatened to avenge the killing and conflict could be sparked at any time between the two countries. Analysts have been warning that this conflict could severely affect the Indian economy.
There are nearly 8 million Indian employed in the Middle East. Their security will be a severe cause for concern if the conflict starts. At the same time, the flow of foreign currency coming from these Indians will also dry-up. Highlighting these points, the analysts warn that the Indian economy will have to face the heat of the conflict between the United States and Iran. More importantly, the crude oil supplies coming from the Middle East also may get interrupted. This has threatened the fuel security of India.
The disruption of oil supply could be a major crisis for India. The foreign ministry said that therefore India had been keenly following the developments in the Middle East. Till date, India had avoided taking sides in the US-Iran conflict, advising all the sides to exhibit restraint. It has been reported that the US Secretary of State Mike Pompeo, held discussions with the Indian Ambassador to the United States whereas, Indian Foreign Minister S. Jaishankar held telephonic talks with the Iranian Foreign Minister Jawad Zarif.
No details regarding the talks are available yet. But apparently, India too expressed concerns regarding the developments in the Middle East, like all the other countries dependent on the oil supplies from the Middle East.