A report by the PHD Chamber of Commerce and Industry (PHDCCI) reveals that the ongoing conflict in West Asia has severely impacted India's tourism and aviation sectors. Inbound tourist traffic has dropped by 15-20%, leading to an estimated loss of ₹18,000 crore ($2.2 billion USD) for the industry. The hospitality sector is also feeling the strain, with nearly 10% of restaurants shutting down and monthly business losses reaching ₹79,000 crore ($9.5 billion USD). Despite a strong recovery in 2025, the geopolitical tensions have introduced new volatility. The aviation sector is particularly affected, with airlines experiencing flight cancellations and significant rerouting, which has increased flight durations by 2-4 hours on key routes. This disruption has raised fuel consumption and operating costs, with fuel accounting for 35-40% of airline expenses. The conflict has also hindered Middle East air corridors, reducing connectivity and increasing airfares.