Strait of Hormuz: 4 key commodities India relies on from this vital trade route
Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Arabian Sea, through which about 20 per cent of the world’s oil passes daily. It is one of the world’s most strategic chokepoints for global trade.
Why is this important now
Following US airstrikes on Iran’s nuclear facilities and Tehran’s threat to close the Strait of Hormuz, concerns have grown over India’s imports through this vital shipping lane.
What is the Strait of Hormuz?
It is a narrow waterway connecting the Persian Gulf to the Arabian Sea, through which about 20 per cent of the world’s oil passes daily. It is one of the world’s most strategic chokepoints for global trade.
India’s oil dependency
India imports about 85 per cent of its crude oil needs. A significant portion comes from Gulf countries — Saudi Arabia, Iraq, UAE, Kuwait — all of which ship oil through the Strait of Hormuz (source: Ministry of Commerce & Industry, PPAC 2024).
LNG (Liquefied Natural Gas)
Besides crude, India imports substantial LNG from Qatar, a major gas exporter whose LNG ships transit the Strait. India’s growing natural gas demand makes this critical for energy security (source: Petroleum Ministry 2024).
Petrochemicals & fertilisers
India also imports petrochemicals, fertiliser inputs like ammonia and urea from Gulf nations — all moving through the Strait. These are essential for sectors like agriculture and industry.
Gold & bullion
Another major import via this corridor is gold — much of India’s gold trade from Dubai and UAE routes through this waterway. In 2023-24, India imported over 900 tonnes of gold, with UAE a key source.
The big picture
If Iran closes the Strait of Hormuz, crude oil, LNG, fertilisers, and gold imports will be directly impacted, pushing up prices and causing supply disruptions in India. The risk highlights India’s reliance on this critical corridor.
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