Discuss the implications of political instability in West Asia for India's economic, energy and diaspora interests.
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India gets much of its energy from West Asia. About one crore Indians live in the GCC countries [2], and India has new ties in the region such as the India–Israel Special Strategic Partnership [3]. Instability there now includes the Gaza war, the 2026 Hormuz disruption and Israel's hung election of 27 October 2026, and it affects India directly.
Energy security
- Chokepoint risk: During the 2026 Hormuz disruption, India raised the share of crude coming through routes outside the Strait from about 55% to about 70% [1].
- LPG vulnerability: About 60% of India's LPG is imported, and nearly 90% of those imports pass through Hormuz [1]. Any disruption hits household cooking fuel directly.
- Price transmission: Oil price spikes widen the current account deficit, push up inflation and raise the fuel-subsidy burden.
Economic interests
- Trade and investment: India–Israel trade was USD 6.53 bn in FY 2023-24, excluding defence [5]. The Bilateral Investment Agreement (Sept 2025) [4] and the FTA Terms of Reference [3] depend on a stable investment climate.
- Connectivity: IMEC, announced at the G20 New Delhi summit (2023), runs through Gulf and Israeli ports. A long war delays it.
- Shipping: Attacks on merchant vessels raise freight and insurance costs for Indian exporters.
Diaspora interests
- Scale: The government treats the welfare of about one crore Indians in the GCC as a priority. It runs helplines and arranged return flights during the 2026 crisis [2].
- Remittances: Gulf earnings support household consumption in Kerala and other sending states. Job losses or evacuations hit those households.
- Israel labour corridor: 6,774 Indian workers had reached Israel by July 2025, almost all of them in construction [6]. Up to 50,000 more were agreed in 2026 [3]. This puts more Indians in a conflict zone, despite the protections promised in the 2023 Framework Agreement [6].
Instability in West Asia therefore threatens India's fuel, trade and people together. India should diversify its crude sources and expand strategic reserves and LPG storage. It should link new worker flows to verified safety safeguards and keep evacuation capacity ready, as it did in Operation Ajay. It should also work with whichever government forms in Israel while pressing for dialogue and peace, as PM Modi repeated on 22 October 2026 [7]. This serves India's interests and SDGs 7 and 8.
Sources
- 1PIB: Statement by Union Minister Hardeep Singh Puri in Parliament on measures to address energy supply disruptions from the West Asia conflict: crude rerouting outside Hormuz; LPG import share and dependence on Hormuz
- 2PIB: Inter-Ministerial Briefing on Recent Developments in West Asia: about one crore Indians in the GCC; helplines and return flights
- 3MEA: India–Israel Bilateral Relations (Feb 2026 brief): Special Strategic Partnership; FTA Terms of Reference; up to 50,000 additional workers
- 4PIB: Government of India and Government of the State of Israel sign Bilateral Investment Agreement in New Delhi: BIA signed Sept 2025
- 5MEA / Embassy of India, Tel Aviv: India–Israel Bilateral Brief: bilateral trade of USD 6.53 bn in FY 2023-24
- 6Lok Sabha Unstarred Question No. 2202: Safety of Indian Workers in Israel (MEA reply): 6,774 workers by 1 July 2025; Framework Agreement protections
- 7PMO: PM receives a telephone call from Prime Minister Netanyahu: 22 Oct 2026 call stressing peace, stability and dialogue in West Asia