The ongoing conflict between Iran and Israel has raised concerns about India's external sector, including the $3.8 trillion economy. The conflict could result in higher commodity prices, lower worker remittances, disruptions to businesses that have diversified to the region's thriving economies. The region accounts for 17% of India's exports, provides 55% of crude oil and 38% of workerremittances. An extended increase in fuel costs could prompt governments in the region to use higher subsidies and lower taxes to mitigate the impact. An additional risk for India is another increase in high gold prices, which together accounted for nearly a third of the country's import bill in value terms in the current financial year.