The Indian animal feed sector faces significant headwinds in 2026 as the ongoing military conflict in the Middle East puts pressure on production costs for domestic feed manufacturers. According to the Indian government's latest economic report, shipping disruptions in the Strait of Hormuz and surging energy costs stemming from the Iran war are threatening to undermine one of the world's largest economies.
India's economy had been on a strong growth trajectory since 2023, supported in part by access to discounted Russian oil redirected away from Western markets. That dynamic helped drive annual GDP growth of 7-8%, cementing India's position as the world's third-largest economy. Prior to the launch of the U.S.-Israeli war on Iran, most analysts expected similar growth to continue through the year. The escalation of conflict in the Middle East has put those forecasts in doubt.
