Iran-Israel War: India faces supply chain disruptions, helium shortage; Govt responds with RELIEF scheme

The Iran-Israel war is triggering significant supply chain disruptions for India, impacting various sectors. The healthcare system is facing a critical helium shortage, essential for MRI machines, leading to potential cost increases and diagnostic delays. The automotive industry is also experiencing gas supply constraints, threatening production and operations. These disruptions highlight India's vulnerability to geopolitical instability in the Middle East and its reliance on imports. ## Latest Update The Confederation of Indian Industry (CII) reports that the conflict is affecting trade flows and raw material availability. The government has responded with crude diversification, LPG production maximization, export facilitation, currency stabilization, and the ₹497-crore RELIEF scheme to help exporters cope with rising freight rates and insurance costs. ## Timeline * **2026-03-20:** BusinessLine reports India's automotive sector is facing gas supply shortages due to the Iran-Israel war, impacting production for major carmakers. * **2026-03-20:** The Times of India reports a helium shortage linked to West Asia disruptions is threatening MRI services in India, potentially raising scan costs. * **2026-03-22:** The Times of India reports that Indian companies are experiencing shipment delays and pressure on key inputs due to the Middle East conflict, with the government responding with measures including the RELIEF scheme. ## What to Watch * Further escalation of the Iran-Israel conflict could exacerbate supply chain disruptions and energy shortages in India. * Monitor the effectiveness of the government's RELIEF scheme and other interventions in mitigating the economic impact. * Track the adoption of helium-free MRI systems and alternative sourcing strategies to address the helium shortage.