Key Points
The ongoing conflict in the Middle East, confined mainly to the Gaza region now, has caused only negligible disruption in India's trade so far, said Crisil Ratings, implying that the Indian companies were not in the crosshairs for now...
Also, elevated crude oil prices have a cascading impact on a host of other sectors that consume the oil itself or linked raw materials," the Crisil report noted...
The CRisil report, however, cautioned that any spillover of the conflict to nearby oil producing and exporting regions could result in supply-related constraints and spiralling prices of crude oil...
A sharp rise in crude oil prices will impact linked sectors in India, such as aviation, automotives, paints, tyres, cement, chemicals, synthetic textiles and flexible packaging...
In conclusion, Crisil Ratings is closely monitoring the developments and will assess the impact on credit quality on a case-by-case basis if there is an escalation in the conflict and a spike in crude oil prices..
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